Is your term life insurance policy expiring? You may be wondering what your options are for renewing it or if it is no longer worthwhile to keep. Before making any decision, there are a few key considerations to think about, including whether this policy is still the right one. Here’s a look at a few of your options.
Determine If You Still Need It
A term life insurance policy remains in place for just a set number of years. It pays out a death benefit should you die while it is in place. You may have bought it when you had dependents and a mortgage on your home. Now that you are a bit older, you may no longer think you need it. The best way to know if you need to continue your life insurance is to determine what might happen if you die. Would someone suffer any type of financial difficulty? If so, consider a policy.
Keep in mind that you can renew your life insurance policy numerous times during your life. You may be able to purchase new policies into your 50s and beyond. It’s still an option.
What to Consider Before You Renew Your Coverage
Before you buy a new term policy, do your homework and know what to expect. Here are some key considerations.
- Consider current rates carefully. Some new policies may be less expensive than what you paid for your existing policy (rates are lower than they have been in some time).
- You still need to consider what you are buying. Look at the term, value, and the cost. Compare several terms to find the one that’s right for your needs. They’re probably different than they have been previously.
Don’t forget to consider a new permanent policy option. Dependent on your unique needs, you may be able to purchase a permanent life insurance policy. There are various forms including guaranteed universal life that typically offers the largest death benefit with a moderate to low premium. You could consider whole life insurance, which costs more but builds cash value for you. It may also be time to consider long-term care policies. These can give you the combination of life insurance and long-term care coverage.
Which one is right for you? Meet with your Tampa life insurance agent. Discuss each one of the options available to you based on your age, health, and needs.