Who buys 20-year term?
There are many factors that determine how much coverage you need and how long your term coverage will last. Do you have a mortgage? How long until it is paid off? Do you have children? How young are they? Let’s look into the top reasons to buy 20 year term life insurance.
If you have at least 20 years remaining on your mortgage, a 20 year term policy is a no brainer. You’ll need to see how much remains on your mortgage as well as other financial situations that your life insurance policy needs to protect.
Most hard working people are on a budget these days and want a quick and easy cheap term life policy. For many shoppers, their paycheck is automatically going in a variety of places. Mortgage is one of the biggest, but there you have utilities, cell phone, car payments, credit cards and more. With 20 year term, you’re getting a good blend of coverage length and premium cost. It’s cheaper compared to 30 year term, but provides longer coverage compared to 10 year term life insurance.
Do you have children? How old are they? Is college in their future? You will need to calculate how much coverage is needed to protect them now and through their college years.
If you plan on retiring in the next 20 years, then a 20 year term could be a great choice. You may not need the protection like you did in your twenties or thirties. If you have kids, they are probably approaching the ages of becoming independent. A 20 year term is often a good choice to provide coverage for a wide variety of situations in your 40s and 50s.
Did you know that your spouse may have to pay off all your debts if you die? It will depend on the kind of debt and your resident state, but yes- that’s a possible scenario. You spouse could be on the hook for credit card debt, outstanding car payments and others. This could make an already stressful time more difficult.