Life Insurance: Can it Be Extended?

September 8, 2010

Most life insurance agents will tell you that the question their existing customers most often ask if their term policies can be extended. Sadly, there is only one answer to this question: NO. Why? Because the term of a life insurance policy is set at the time of issuance, and there are no extensions after that term.

When you’re shopping for term life insurance, then, be sure to talk with your agent or financial advisor about what term length is best for you. In most cases, unless you are taking out a life insurance policy that needs to have a short term for a reason (ten years to cover a short-term loan, for example), the longest term available (generally 30 years) is the best plan.

When you do a close comparison of different types of term insurance, you might find that even though a shorter-term policy seems less expensive in the moment, the rates tend to be higher if something happens to cause your health to deteriorate, while a longer-term policy will ultimately cost you less money in premiums.

Bottom line: if you’re buying term life insurance, purchase a policy with the longest available term for your age.