With term life insurance policies such as the Gerber Life Term Life Plan, you have the flexibility of choosing how long your coverage will last. Here are a few questions to ask yourself as you decide on the right length of term life insurance for you and your family.
Will you be supporting dependents?
As the head of your family, you want to provide for and keep your children and/or aging parents financially protected, should you no longer be with them.
If you’re growing your family or have young children, a 20- or 30-year term may be the best fit. It could keep your family covered until your kids become financially independent adults. If you’re caring for older children or parents, maybe a 10-year term is what you need.
Do you have a mortgage?
Your home is a major investment. Could your family make monthly mortgage payments – or rent payments – without your income?
With the right amount of life insurance coverage, you may be able to support your dependents and cover housing payments as well. Consider the length of your remaining mortgage. If you still owe payments for the next 15 years, a 15-year term life policy can give you the greater peace of mind that you need.
Do you have other debt?
Car payments, student loans, medical bills, and credit card balances are all common sources of debt other than your mortgage payments. Crunch some numbers and consider how long it would take your dependents to pay off those debts. As an example, if you’ve still got 10 years left on your student loan, a 10-year term life policy may be a good fit for you.
By taking the time to assess your financial situation, you’ll feel more confident about making the right choice when you buy a term life policy.