Is 15-year term life insurance a good idea?

A 15-year term life insurance policy can be an ideal option if you have short-term insurance needs with a specific end date, such as a child’s graduation or your retirement. If you still think you'll have major financial obligations 15 years from now, though, consider investing in a longer term length.

How does 15-year term life insurance compare with whole life insurance policies?

A 15-year plan is a more affordable short-term option than whole life. You’ll pay lower premiums while enjoying the same amount of coverage during your policy. A whole life policy offers permanent coverage to protect your family, while also providing cash value that grows over time. Talk to a life insurance professional about your needs to determine which type of policy is right for you and your family.

What happens when a 15-year term life insurance policy ends?

Once your policy ends, there are several things you can do: Extend it: In some cases, you may be able to extend or renew your term policy. Keep in mind that your premiums will increase based on your current age if you buy life insurance again. Convert it: Need more insurance for a longer term? Some insurance companies will allow you to turn your term life insurance policy into a whole life policy to enjoy lifelong coverage. Let it mature: If you no longer need your life insurance, you can simply let your coverage end.

Does a 15-year life insurance premium increase every year?

That depends on which policy you choose. With a level or decreasing term life policy, your premiums will stay the same throughout your 15-year term. The premiums of an increasing term life insurance policy will rise every year, however.

Do I have to take a medical exam to get a 15-year term life insurance policy?

Usually, yes. This exam is free to you and includes your height, weight, and medical history. A licensed professional may also take blood and urine samples. Your medical exam results can help determine your life insurance rates. At eFinancial, our goal is to make your medical exam convenient and fast. Get our tips for taking a medical exam here.

15-Year Term Life Insurance

Starting a family? Building a career? A 15-year term life insurance policy can give you the affordable coverage you need, right when you need it.

What Is a 15-Year Term Life Insurance Policy?

Term life insurance is a type of life insurance that covers you for a set period of time. Many people opt for term life because it’s simplest and most affordable option available, making it a good fit for many families.

If you’ve decided term life insurance is right for you, you’ll need to choose a term length – typically 10, 15, 20, or 30 years. The ideal term length depends on your current financial obligations and how long you expect them to last. When considering your financial responsibilities, make sure to include:

day-to-day living expenses
your mortgage
credit card debt
student loans
any other expenses your family would need to cover if you died

A 15-year policy will cover you for a decade and a half, making it ideal for people who expect to have no major financial responsibilities by then. If your children will be financially independent, your mortgage will be fully paid off, and you’re planning to build your savings in the next 15 years, this type of life insurance might be right for you. If you’re older and don’t qualify for a longer term policy, choosing a 15-year policy can also help you lock in the protection you need for your family.

If you think you’ll need coverage for longer than 15 years, though, you may want to consider buying a longer term policy now. Many young families need financial protection for decades, and your rates will be higher if you need to buy life insurance again when you’re older.

How Does 15-Year Term Life Insurance Work?

During your 15-year term, you’ll pay monthly or annual premiums, or payments, to keep your coverage active. If you die while the policy is in effect, your beneficiaries – like your children, spouse, or parents – will receive a lump sum of cash called a death benefit. Once the 15 years are up, you can choose to extend your insurance plan or let it expire.

Benefits of 15-Year Life Insurance

Affordable coverage

Affordable coverage
Temporary coverage

Temporary coverage
Flexibility

Flexibility

You've Got Questions. We've GotAnswers.

A 15-year plan is a more affordable short-term option than whole life. You’ll pay lower premiums while enjoying the same amount of coverage during your policy.

A whole life policy offers permanent coverage to protect your family, while also providing cash value that grows over time. Talk to a life insurance professional about your needs to determine which type of policy is right for you and your family.
Once your policy ends, there are several things you can do:
- Extend it: In some cases, you may be able to extend or renew your term policy. Keep in mind that your premiums will increase based on your current age if you buy life insurance again.
- Convert it: Need more insurance for a longer term? Some insurance companies will allow you to turn your term life insurance policy into a whole life policy to enjoy lifelong coverage.
- Let it mature: If you no longer need your life insurance, you can simply let your coverage end.