Life Insurance Awareness Month: How Long Should My Policy Term Be?

After you have settled on the amount of coverage you will need for your policy, the next question you should ask yourself is “how long should my policy term be?” If you are a younger individual, the best answer is typically, as long a term as you can afford to purchase. For example, getting terms that match the length of your financial commitments, such as a mortgage, will help to insure that your family is financially protected in case something were to happen to you before the investment has been paid off.

A perfect example of someone getting a policy with a long term is the story of Jackie Blanchard.  Jackie purchased her policy when she was young, and ensured that her family would be well taken care of in case of a tragedy. This proved to be a fortuitous move for Jackie’s family, as she was diagnosed with lung cancer a short two years after purchasing her life insurance. You can read about Jackie’s story here (www.lifehappens.org) …. 

When Jackie Blanchard’s husband died at a young age, with only enough life insurance to pay for his funeral, Jackie vowed that her young daughters, Ebony and Shanna, would be financially secure if anything ever happened to her. To keep this promise, Jackie immediately scheduled an appointment with insurance agent Virginia Acosta, FICF. “She said she wanted the best insurance she could buy, and I made sure her family would be protected,” says Virginia.

Two years after purchasing her policy, Jackie became ill with a lung infection and was later diagnosed with lung cancer. Because the illness prevented her from working, a provision in her policy covered the payment of her premiums while the policy’s disability benefit helped cover mounting health care costs. Despite her illness, Jackie’s zest for life was unstoppable. She took a cross-country road trip with her mom and daughters and even continued to organize parties and dinners for family and friends.

When she found out that her condition was terminal, the accelerated death benefit provision allowed Jackie to access up to 75 percent of her benefits while still alive. She used those proceeds to finance a home and a car for her daughters and parents, and pre-pay her funeral. She even put some money away for college for her daughters.

Jackie died at age 38. But her dreams for the girls are very much alive. Ebony, who graduated with honors from college this year, and Shanna, a senior in high school, live with their grandparents in the home their mother purchased for them. “Jackie wanted the girls to have the best education and the same lifestyle after she was gone,” Jackie’s mom Veordia says. “That’s why she chose insurance, to help them along the way. That was her greatest wish.”

The moral of the story is that you never know when tragedy can strike. By having the longest term possible as a young(er) person, you insure that your family will be protected for many years to come.

However, not everyone is as young as Jackie, when they purchase term life insurance. That is why it is best to compare your options when looking into purchasing term life insurance. Different companies will provide you with different options and rates based on a variety of factors. Using an independent term life insurance agency, like SelectQuote, will help to cut down on the hassle of comparing your options and find you the best policy for you and your family.

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