Learn more about Life Term Insurance

 

How much insurance coverage is necessary?

It's important to ensure your debts are paid off, so your loved ones aren't left with significant financial burdens.

Here are some factors to keep in mind:"

 

  • Your income
  • Net worth
  • Family needs
  • Debt
  • Other insurance you have

 

If you have questions about term life insurance, such as how much coverage you might need, consulting an advisor can be helpful.

If you're unable to schedule an appointment through our webform, please email info@dejesusfinancialplanning.com for assistance.

How long do I need coverage for?

Term life insurance is designed to provide financial protection for your loved ones in the event of your death, and there are several factors to think about when selecting your coverage.

Your age, future goals, and whether you have a mortgage, debt, or children can influence your decision.

Here are some key factors to consider when determining the ideal term length for your situation.

 

Short term (5-10 years)

1. You’re seeking an affordable insurance policy.
2. You need a flexible plan.
3. You want to use your current age and health to secure a favorable rate
4. Your mortgage took longer to pay off than expected, or your children aren’t financially independent yet, so you need coverage to fill the gap.

Medium term (11-20 years)

1. If your kids are still in school you may want coverage until they’re financially independent.
2. If you have a mortgage or significant debt, a medium-term policy can help ensure that your family is financially protected until those obligations are paid off.
3. If you’re in the process of advancing your career, growing your business, or reaching financial goals, you may need coverage for the next 11-20 years to bridge any financial gaps.

Long term (21-50 years)

1. If you want to provide financial protection for your loved ones throughout their lifetime, especially if you have dependents who will rely on your income well into the future.

2. If you’re planning to leave a financial legacy for your heirs or want to ensure your estate is handled smoothly upon your passing, a long-term policy can help cover estate taxes or provide a lump sum for your family.

3. If you have long-term debts that won’t be paid off for several decades, such as a mortgage or business loans, long-term coverage can offer peace of mind that these liabilities will be covered.

4. If you have a child or family member with special needs who will require lifelong financial support, a long-term policy can help ensure they are cared for even after you’re gone.

5. Locking in a low premium rate now can be particularly beneficial if you're younger and in good health, as the cost of premiums is usually lower when you're younger.