How long should I get life insurance for?

Seeking Advice
1

I’m looking into getting life insurance, but I’m not sure how long I should take it out for. I know it depends on what I want to cover, like a mortgage or providing for my family, but how do you decide the best length of time? Any tips?

2

Yeah, the length really depends on your situation. If it’s for a mortgage, I’d match the length of the policy to the length of your mortgage. So if you’ve got 20 years left on it, get 20 years of cover. It keeps things simple.

3

@Mackenzie
Totally agree. That’s what I did—my mortgage is 25 years, so I got a policy for the same period. Just makes sense, right?

4

If you’re more concerned about taking care of your family after you’re gone, you might want to think about how long they’d need financial support. For example, I set mine to last until my kids are out of full-time education. That way, they’re covered until they’re independent.

5

@Ari
Good call. I did the same. My partner and I wanted to make sure our life insurance would help with the kids’ education costs if something happened to us, so we took out a 20-year policy.

6

Don’t forget, the younger you are when you take out life insurance, the cheaper your premiums will be. So even if you think you don’t need super long cover, it might be worth getting it now while it’s more affordable.

7

@Teo
Exactly! I got mine in my 30s, and the premiums are way lower than if I waited. Plus, I added critical illness cover too, just to be safe.

8

I went with decreasing life insurance since it’s tied to my mortgage. It’s a bit cheaper, and the payout amount reduces as the mortgage goes down. Makes sense if that’s your main concern.

9

LunarLegend said:
I went with decreasing life insurance since it’s tied to my mortgage. It’s a bit cheaper, and the payout amount reduces as the mortgage goes down. Makes sense if that’s your main concern.

I considered that too, but I ended up going with regular life insurance to cover more than just the mortgage. That way, there’s a little extra to help with living expenses if something happens to me.

10

If you’re worried about your partner being dependent on your income for a while, you could take out a longer policy to make sure they’re covered until they can manage on their own.