One of the most common questions about term life insurance is, “Will my premium change over time?” At Low Cost Life Insurance, we specialize in level term life insurance, which offers you and your family affordability and predictability. Here’s what you need to know about your premiums once you purchase a life insurance policy from LCLI:
Fixed Premiums During the Term
A term life insurance policy covers you for a set period of time, such as 10, 20 or 30 years. One of the key advantages of term life insurances is that you will pay a fixed premium for the entire term. This means you will not have any surprise increases for the duration of your policy. A fixed premium provides you with stability and makes it easier to budget and plan for the future.
What Happens After Your Term Ends?
When your level term policy eventually reaches its end of term, you will need to assess your overall financial situation to determine if you still need to continue your coverage. At this point, it is important to note that, based on increased age and potential changes in your health that naturally can come with growing older your premium will increase when you reach the end of term on your current policy. While you may see higher costs with your new term, you are also given the flexibility to evaluate your policy and adjust it to fit your needs at that time. As a general rule, we recommend maintaining term life insurance in order to offset your loss of income due to your premature death to around age 70. Once you are in your 70’s and beyond, the idea is to then self-insure this risk. In other words, once your retirement account is fully funded, once your children are financially independent and you no longer have any debt, why do you need life insurance then? Most people don’t!
Benefits of Term Life Insurance
- Affordability: Term life insurance is typically more affordable than permanent policies, making a more budget-friendly option.
- Predictability: Fixed premiums offer you stability for the length of your term.
- Flexibility: When it’s time to renew your policy, you can adjust your coverage or explore new options based on your changing life circumstances.
Making the Right Choice
Term life insurance offers consistent, predictable premiums for the duration of your term, giving you stability and peace of mind.
At Low Cost Life Insurance, we are here to help you find the coverage that best suits your budget and goals. Reach out today for a free quote.
