When looking into life insurance quotes, term length is an aspect you should spend some time on. The term is: “the length of time the company guarantees the rate (the amount you pay) to remain level”. It is important to note that if you choose, a 20 or 30-year term, it is the company that is locked into that commitment, not you.

A good rule of thumb when considering term length is, “you can always drop it, but you may not always be able to extend it”.  An example to clarify, a person buys a 10-year term with the idea of reapplying for another 10 years at the end of the policy.

This is a bad on two fronts.

While 10 year rates are attractive, if you buy two ten year terms instead of a 20 year term, you pay more over the full 20 years. The second 10 years is way more expensive.

The other problem with picking away at your life insurance needs 10 years at a time is unexpected changes in health. If you buy a 10-year term taken while in great health, and before the end of the term your health changes, you will end up paying substantially higher rates when you try to reapply. You may even be declined.

Call the The Life Insurance Agency toll free at 866-823-4789 today and discuss what term length is the most appropriate for your needs.