Are you looking for term life insurance for 5 years or less? OR are you having trouble finding a 5 year term life insurance policy? If this is you, then please read on.
Typically term life insurance is less expensive the shorter you keep it. A 10 year term is less expensive than a 15 year term. A 15 year term is less expensive than a 20 year term. You get the idea.
However, this is NOT the case with 5 year term life insurance. A 10 year term policy will be less expensive than a 5 year term life insurance policy.
There are only a few companies on the market who carry 5 year term life insurance so the lack of competition makes the prices more expensive.
Currently, these are the only companies that offer 5 year term life insurance: Minnesota Life, New York Life, Trustmark, Pan-American and State Farm. There are 100’s of life insurance companies that are competing for the 10 year term life insurance market so the pricing is a lot better.
Let me show you what I mean when a 10 year term life insurance policy will be less expensive than a 5 year term life insurance policy. Lets take the below case and compare the top 2 companies and rates as of today:
5 year term life insurance rates:
10 year term life insurance rates:
As you can see, there’s a considerable difference in premium. In this case, you’re saving almost 15% just by buying a longer term length (this varies by case). You’ll save money EVERY TIME by choosing a 10 year life insurance policy over a 5 year life insurance policy.
If you’re saying to yourself “Well yeah, but I only need the life insurance for 5 years”, then simply cancel the policy after 5 years. It’s as simple as that.
You see, life insurance is a unilateral contract. Meaning, the life insurance company will guarantee coverage for the specified term length no matter what happens to your health. However, you can cancel at any time with no cancellation fees. You just lose the coverage.
Bottom Line. If you’ve got a short term life insurance need that’s 5 years or less, take a look at 10 year term life insurance. You’ll save money and have the option to keep the life insurance longer if you need it.
At Rootfin, we’re independent agents and can offer ALL of the top rated term life insurance companies and can find the lowest rate available for any risk or product type. Please don’t hesitate to contact us for rates or with any questions.
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