The Long Read
Everything you *need to know* is right above this. Scroll down, only if you'd still like to read more (honestly, why?)
Choosing your policy duration is one of the most important steps of buying term insurance which will not only decide how long you stay covered but also how much premium you pay.
Ideally, you should cover yourself only till you plan to work.
The logic is simple:
By the age of retirement, say 60-65 years, you will not only have fulfilled most, if not all, of your major financial goals, but your dependents aka family members are also most likely to have become financially independent.
There’s no need for your term plan to replace your loss of income anymore. So why pay extra premiums and stay covered longer when you just need to stay covered till your retirement?
Unfortunately no, you cannot change the specifics of a term insurance plan after buying it.
Congratulations! You’ve got the gift of a long life.
But if you outlive your term policy duration, you get nothing. Remember, term insurance does not give any maturity benefit aka benefit on completion of policy duration.
But if you buy a TROP (Term Return of Premium) Plan, you will get a refund of the premiums you have paid in the policy duration.
The urge to stay covered longer to give your family adequate financial protection is normal. But, seriously, you don’t need to stay covered till 99 years of age. You just need to stay covered till your age of retirement. By then you’ll have met all your financial goals and your family will ideally no longer depend on your income anymore for their livelihood.