No More 5 Year Term Life Insurance: See our Alternative Short Term Plans
5 year term life insurance policies are largely a thing of the past. There may be only one or two carriers in the country who offer a 5 year term anymore.
Out of the more than 60 companies we represent – none of them offer a 5-year term.
However, if you have an agent who knows a thing or two about life insurance (like us), they can show you how to get a 5 year policy at a low cost and with options after 5 years as well.
Read on to have your 5 year term questions answered, and to learn how to get the best life insurance rates overall.
What is 5 year term life insurance
5 year term life insurance is a policy that covers the insured for 5 years. It is one of the shortest term policies out there, after annual renewable term policies.
While shorter life insurance terms typically have cheaper rates, this is not the case for a 5 year term. This is because insurance companies usually don’t see the underwriting process as worth it for such a short policy, and so charge higher rates to make up for it.
Like most term insurances, the policyholder of a 5 year term may have the option to convert their policy once it expires. However, it’s important to get the help of an experience life insurance agent when looking at policies, to make sure that your policy includes a conversion option.
5 year term life insurance alternative products
So if you’re looking for a short term life insurance policy, but don’t want to pay the overpriced premiums for a 5 year policy, what are your options?
Here are the best alternatives to a 5 year plan:
Who this type of policy might be right for
Because of its overpriced premiums, we don’t recommend a 5 year policy. However, the above-mentioned ART, 10-year term, or UL policy could be a good option for someone looking for a shorter-term policy.
Here are some situations in which an ART or otherwise flexible policy might make sense:
Cost of 5 year term life insurance
During the underwriting process, the insurance company will take many factors into consideration. Below are just some of the factors that the underwriter may assess:
- Tobacco Use
- Family History
- Health Condition
- Medication History
- Death Benefit Amount
- And many other factors
Learn more about the average cost of life insurance here
These factors, among others, go into determining your rate class. Depending on the rate class you in, your premium can vary greatly. Get in contact with one of our agents today using the quote widget to the right, to see which class you fall into.
Your rate class is the biggest factor when determining the average cost of your life insurance. The below example rate chart demonstrates this, showing the the monthly premium costs by rate class for a 40-year-old female with a 20-year term policy and a $250,000 death benefit:
How to get the best quotes
So now you know that a 5 year term policy is likely not the best option for you. However, if you’re still looking for a short term life insurance policy, our agents are here to help you find the best carriers and rates for your unique situation.
Just fill out our simple quote form, and our comparison engine will pull up rates from over 30 carriers in a matter of seconds. Choosing life insurance may seem scary, but our Insurance Geeks make the process so easy that you’ll wonder why you didn’t use us sooner.