20 or 30-year term at 33?
![[Post New]](/jforum/templates/default/images/icon_minipost_new.gif){kind=icon}
Anonymous
|
Should I get a 20 or 30-year term life insurance policy. I am 33 and a SAHM, but will go to work hopefully. In the most straightforward development of events, I can count on 60-100K stable income.
|
Anonymous
| 20 or enough until the oldest is in college. |
Anonymous
| I meant youngest of course. |
Anonymous
| How old is your youngest? Do you plan for any more kids? You should aim for thru your youngest's college if possible. |
Anonymous
|
I'd do 30 since it's probably still pretty cheap
For you |
Anonymous
I admittedly don't understand life insurance well, but don't they re-price the premium annually? In any event, probably better to go with 30 because you don't know if you will qualify for those extra 10 in the future if you still want it and you can terminate the policy after 20. |
Anonymous
Not during the length of your term. |
Anonymous
They don't reprieve if you get term. They take the total payments and divide by the term. |
Anonymous
|
Definitely 30. It's not much more expensive.
And a lot of things can happen/change between age 53 and 63. |
Anonymous
| 20 year term is enough to get children to college |
Anonymous
|
I would get 30 year term and if at 55 I decide I don't need it I would stop paying the premiums and let it lapse. But I prefer the most options possible stand not everyone has the same priorities.
What is the price difference? You may want to look into an option to "buy up" the amount down the road if circumstances change. |
Anonymous
| My youngest is seven months old and we are not ruling out having another child. I can get a good rate now: 31 dollars/month (20yt) or 54 (30yt) for the same coverage amount. The 30yt is still more expensive. So my question is if I can make do with 20yt. |
Anonymous
|
It depends a little bit on what purpose you think the life insurance serves and what your finances look like otherwise. If you will be able to save enough annually between now and 20 years from now to fund most of college for all of your children and pay off (or nearly pay off) your primary mortgage, then 20-year is probably fine for you. In this scenario, you've presumably built up enough in assets over the 20 years that you no longer need the insurance to cover the gap.
If not, you may want the longer term. Other people think that it's important to have life insurance forever so that there's money coming to descendants after death - it depends on whether you see life insurance as filling a specific financial need in case of your death or as one prong of a long-term financial planning scenario. |
Anonymous
| With a baby and potentially another baby in the future, I'd want more than a 20 year term to get them through college age. Does your company offer a 25 year term? |
Anonymous
|
How much are you looking at? 500K? 1 Mil? you might be better off going for more insurance with 20 years....
In 20 years, you might be able to save -- requiring less assets. |