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5 Year Term Life Insurance

A 5 year term life insurance policy is a type of term life insurance protection that provides coverage for a period of five years, the term. With 5 year term life insurance, the premiums remain level for the first five years with the option to renew the policy at the end of the term. Premiums may increase after the initial five year term. This type of policy is a great solution for covering short-term life insurance needs on a limited budget.

Short-term life insurance needs may include the following financial obligations:

• Credit card debt
• Outstanding medical expenses
• Car loan
• Home equity loan
• Student loan

Is 5 year term life insurance right for you?

If you are looking for affordable protection for your family, term life insurance is your answer. Most term life insurance policies offer term lengths from 1 to 30 years. A 5 year term life policy may not provide coverage for as long as your family needs it. For instance, if you have a 30 year mortgage, 5 year term life insurance will not cover the remaining cost of your home.

Only consider 5 year term insurance if you have:

• Short-term life insurance needs - Short-term life insurance needs are usually those that only last for a well-defined period of time. For instance, a car loan can last 60 months, or five years.
  
  
• Long-term life insurance needs, limited budget - Term life insurance, by nature, is the most affordable type of life insurance coverage. It offers maximum protection at a low cost. If you are on a tight budget now, consider buying a 5 year term life policy with the ability to renew for a longer term. Your financial situation may improve by the time you need more coverage.