How long should the guaranteed premium and term life period be?
Deciding which guaranteed term duration you should buy – 10 years, 20 years, 30 years, or some other number – requires a thoughtful review of your debts, financial needs, dependants’ needs, and when and if all these might change over time. A buyer needs to decide how long a guaranteed term life insurance policy needs to be in force with a guaranteed premium so that the appropriate funds will be available to meet targeted financial needs such as: • An amount that would be needed to replace all or a portion of your income for a given period of time. • How long child care might be needed. • The time /payments remaining on existing short-term and long-term debts and mortgages. • The duration of Children’s and/or spouse’s education expenses. • How long you might have obligations or caregiver commitments to parents or elderly relatives. Because term life insurance costs increase with age (after the initial guarantee period of 10 to 30 years) and will in most cases jump quite dramatically if
