Q: I am 15 years into my 20 year term life insurance policy; what do I do in five years when the 20 years is up?
A: It pays to speak with an Insurance professional who will review your current life policy and discuss your options before the existing policy ends. Life insurance premium is based on the cost of insurance relative to current mortality tables which means premium calculations can fluctuate because of the data. A common reason why people choose term life insurance is that for a relatively low cost spanning between 10 to 30 years, you would have a greater face amount of life insurance than typically a permanent life policy would offer. Depending on the insurance company chosen and the cost of insurance offered assuming your health condition hasn’t changed, shopping your current term policy could provide an extension on the number of years a term policy could be extended at a reasonable cost. It is a good idea to shop your life insurance premium every few years to make sure you are getting the most bang for your buck.