Alabama Life Insurance Company
Reader’s Question:
Im planning to buy a life insurance in Alabama and I just want to ask how long should a term life insurance period should I buy?
Gene
Thank you for asking Gene.
Knowing which guaranteed term duration you should buy in Alabama – 10 years, 20 years, 30 years, or some other number – needs a thoughtful review of your debts, financial needs, dependents’ needs, and when and if all these might change over time. A policyholder has to decide how long a guaranteed term life insurance policy needs to be in force with a guaranteed premium so that the appropriate funds will be available to meet targeted financial needs such as:
* An amount of money that would be needed to replace all or a portion of your income for a certain period of time.
* amount of time for child care needed.
* The remaining time and payments on existing short-term and long-term debts and mortgages.
* The duration of Children’s and/or spouse’s education expenses.
* The amount of time you might have obligations or caregiver commitments to parents or elderly relatives.
Since term life insurance costs increase with age and will in most cases jump quite dramatically if continued year-by-year at the end of your initial guaranteed term life insurance period. It is probably smart to choose a generous guaranteed term period. Should your needs refuse prior to the end of the guarantee period you selected, the policy can be terminated early or the face amount (and thus the premium) reduced prior to the end of the original guarantee period.
You may speak to your Alabama insurance agent or any insurance company in your area to give you an advise regarding this.
Goodluck!
MariCAR
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