Short term life insurance, such as 5 year Term or 10 year Term policy, can cost much less money than life insurance locked-in for longer periods of time, such as 20 or 30 year Term Life Insurance.
However, when that short term has ended, the price for that term life policy will increase quite a bit if you renew your coverage.
If the insured person's health has gotten worse during that time, he or she may need to pay much higher premiums or possibly may not even qualify for a new life insurance policy when the current term has expired.
That's one reason it may be wise to purchase the longest term available when buying your initial term life insurance policy, that way if your needs change you have guaranteed a lower rate for a longer period of time, instead of having to buy a new term life insurance policy when your current coverage ends.
However, when that short term has ended, the price for that term life policy will increase quite a bit if you renew your coverage.
If the insured person's health has gotten worse during that time, he or she may need to pay much higher premiums or possibly may not even qualify for a new life insurance policy when the current term has expired.
That's one reason it may be wise to purchase the longest term available when buying your initial term life insurance policy, that way if your needs change you have guaranteed a lower rate for a longer period of time, instead of having to buy a new term life insurance policy when your current coverage ends.
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