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A Millennial’s Guide to Life Insurance Part 1: Do we even need it?

When Your Level Term Life Policy is Expiring

Remember when you bought that level term life policy back in your 30s or 40s? It’s hard to believe a decade or two has passed and now it’s time to assess your options. Here’s what you should do if you find yourself in this situation: Shutterstock_57416113

  1. Determine the state of your health. You’re more than likely going to have to go through underwriting to secure a new policy. Many term life policies will allow you to continue your current coverage at higher rates that often increase with your age (referred to as the “ultimate rate”). If your health has declined and you don’t believe you could pass underwriting again, your best bet may be to pay the ultimate rate. If you’re not sure if your health conditions would cause an issue, it’s worth a call to your insurance broker to ask.
  1. Assess how long you need coverage for. How many years are left on your mortgage? Will you be paying for student loans for yourself or your children? Depending on your age and health, applying for a new level term might be the best bet. Premiums on traditional life insurance policies (annual renewable term life) increase with your age and can be expensive to secure after a certain age. With level term life coverage, you pay the same amount annually over the life of the loan.
  1. Look into a 50+ or senior life policy that is specifically designed for people in your situation. Don’t be put off by the name. What matters is if the policy is a fit for what you need it to do…and that is to cover your liabilities for the amount of time you require.
  1. Call your broker. Life insurance can be pretty complicated and there are lots of different types of policies. It’s hard to find time to make that call, but ten minutes of your time could save you a substantial amount of money on your policy.


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