Length of Global Life Insurance Terms
When applying for a Global Term Life Insurance Plan you will be allowed to select the length of the policy. As previously stated this is known as the plan’s “Term” and coverage is only in force during this period.
Common options for the duration of a Term Life Insurance plan are 5, 10, 20, 30, or 35 years. It is important to note that longer terms may be possible for this type of coverage but these will usually come at the expense of an increased policy premium. In fact, choosing a Term Life Insurance policy with a longer term will always be more expensive than choosing a shorter period of coverage; as such you can expect to pay more for a plan with a term of 35 years than you would for the same policy with a term of 10 years.
The length of the term which is provided by the life insurance is at the choice of the policyholder, so it is important to carefully consider your needs and contemplate the exact length of time you foresee the coverage being required. Normally, the longer the term of the insurance, the greater the chance that the insurance company will have to provide a lump-sum settlement to your designated beneficiaries, consequently leading to a higher cost for the coverage being offered.