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When To Buy 5 year, 10 year and 15 year Short Term Life Insurance

By Mike Heuer

Term life plans lasting no more than 15 years can prove very easy to purchase at very affordable rates for nearly anyone.

There essentially are two types of short term life insurance plans. One is a standard level term life policy that issues a death benefit if the insured party dies for any reason other than suicide. The other type is an accidental death life insurance plan that only pays a death benefit if the demise is caused by an accident, such as an auto crash or other mishap. Accidental death plans are very affordable and can be a good option for people when dealing with tight budgets while hunting for new job opportunities.

For short term life insurance plans, a term life policy lasting for between 6 months and a year is a very popular option and most often is used by people who are between jobs and no longer have their group term life insurance benefits. The short duration of such plans makes them very easy to obtain at very affordable rates and generally are available with death benefits ranging from $50,000 to $250,000.

Among popular short term plans are Guarantee Trust Life Insurance and HSBC Insurance “SmartLife” term policies. There are no medical exams required with the policies, which often are combined with short term health insurance plans to keep people healthy while searching for their new employment opportunities.

A 5 year term life insurance plan can be a good value for some people. A 5 year policy generally is best for people with either very short term financial obligations, like helping to ensure a college tuition would be covered if the head of household were to die, or when a young couple is just starting to raise a family as well as establishing a work career.

An elderly couple also might find a 5 year term life insurance plan to be a good way to protect financial obligation late in life, such as might happen when taking out a home equity loan or a short term reverse mortgage. In such instances, the ease of purchase as well as low cost of a 5 year term life plan can be very beneficial.

There also are times when a 10 year term life insurance plan is the best option for consumers. Such instances include when putting children through college, paying down a mortgage that might have 10 years left on the payment schedule or when opening a business and taking on additional debt that will last perhaps 10 years. A 10 year term life insurance plan can be a great way to protect such obligations.

A 15 year term life insurance policy also is available from many life insurance can be a good tool for protecting relatively short term financial obligations, such as paying down a 15-year mortgage. A 15 year term life insurance plan, like a 10 year policy, generally is used to protect very short term interests, like ensuring children can complete their college educations if one of their parents might die.

But a 15 year term life policy can provide an additional level of coverage that can protect a great deal of financial obligations for a very affordable rate.