Most life insurance agents and agencies will try to convince you that you need life insurance the rest of your life! That simply is not true. So then how long do you need term life insurance for? Let's talk about that.
We recommend a life insurance term of 15-20 years. We believe that within 15-20 years, if following the Baby Steps, you should be at a point where your family have built enough wealth to sustain themselves without a life insurance policy. This is what we call being self insured. It is okay to consider a 30-year term when you are young and starting your family since it allows more time for you to accomplish these goals – as long as the additional cost doesn’t put too much strain on your budget. Also, as you get older, a 10-year term will likely work if you have eliminated debt but are still working on growing your savings to make sure your family’s financial lifestyle would not be drastically impacted by your death. The coverage you should carry may vary by what you can currently afford, but we recommends 10-12 tines your income. This amount is generally a safe bet, as it will allow your family to keep up their current lifestyle, pay any debts, fund their emergency and savings accounts, etc.