What to Know about a 15-year Life Insurance Policy

What to Know about a 15-year Life Insurance Policy

Getting life insurance demands predicting and anticipating the future through concern for the financial safety of your dependents, family, and possibly friends. While it provides financial protection, many find that it’s unnecessary to cover themselves with a life insurance policy for their entire, remaining lives. Through term policies in increments—such as 10-year terms, 15 years, 20 years, or 30 years—they can make smart decisions and secure savings.

They decide to choose these more limited policies to save on premiums while receiving the right coverage to benefit dependents and loved ones. At the same time, they offer protection at key moments in their lives like when they are investing in a home or making other financial decisions according to a recent study. It’s in these moments that a 15-year policy, for example, shines as an attractive option.

In truth, term life insurance even at the 15-year level, which is shorter than the typical 20- or 30-year interval, makes sense for many who may be unaware of its benefits. Term life insurance such as this is not only a practical way to prepare for unfortunate tragedies, but it’s also a way to save money on rates while making a smart insurance purchase.

Reasons to Choose 15-year Term Life Insurance Policies

If you imagine your family suffering after your passing without death benefits, you soon see why so many people can’t tolerate the big risk. Their wives and husbands, most loved sons and daughters, friends and extended family would lose you and your support. It throws them into the business of putting together what debts you leave behind and forces them to support themselves in new, demanding ways while they grieve.

To minimize this potential impact, life insurance promises to provide a net of financial safety in case of an accident or unexpected death. And, by comparison to whole life insurance which covers people indefinitely, most select the option to give security and peace of mind through key moments in life. A 15-year policy, for instance, can give many different forms of protection which is the primary reason for getting coverage according to the Journal of Risk and Insurance:

  • Cuts out financial suffering from the grieving process
  • Can offer continuous income through staggered payments
  • Eliminates remaining debts, mortgages, and responsibilities
  • Reduces the cost of insurance premiums that tie up your finances

Accidents and the unexpected can happen in life since the future is always uncertain. But, with a term life insurance policy of 15 years, you can easily help your family and beneficiaries finish off remaining financial liabilities and ease their suffering during the emotional impact of their loss. With some policies, you can even structure payments to be given over time, offering loved ones the income that you once provided while living.

For a time, a 15-year level term policy makes you insured in such a way that it can effectively replace the support you gave your family as a head of household. And, for partners or friends, it can continue to offer something to fall back on as they process how to live without you. As a result, no one who depends on you emotionally or financially needs to put their own life on hold while they pick up the pieces. Children can go to college, spouses can run the home, and families can find some ease in their suffering.

More than these, a 15-year term life insurance policy costs less than what other whole and longer, 30-year term plans (with big pluses too) might cost. Because the insured is covered for a shorter amount of time, there is less need to worry about how likely you are to activate death benefits at an advanced age, within your line of work, after an accident, and so on. In effect, people who choose a short-term policy get impressive rates on their life insurance.

See what kind of premium some insurers will offer by seeing where you fit into this table of applicants by age and gender:

Sample 15-Year Term Life Insurance Annual Rates for $500K in Benefits

Applicant AgeMaleFemale
25$315290
35$325295
45$690590
55$1,7901,240
This table shows younger applicants get better rates, but people later in life can still get lower rates with a short, 15-year term life insurance policy.

Why 15-year Life Insurance Terms Make Sense for First-time Policy Seekers

If you are new to this idea or have never thought about life insurance before, a 15-year policy is something to consider for the freedom and small commitment needed. Instead of requiring a long-term promise to pay premiums until the very end, you can agree simply to cover yourself when absolutely crucial as you scale your career, buy your first home, or start sending your children to school. With a specific range of coverage, you get even more benefits from 15-year term life insurance:

  • Beneficiaries feel less fear due to helpful death benefits
  • Policyholders sense security knowing debts will settle
  • 15-year terms can offer lower rates than longer policy terms
  • Spouses, children, and more receive more financial flexibility
  • Essential years and periods in life are covered without unnecessary rates
  • Commitment levels get lowered with a shorter promise to pay

While these are all quite impressive, there are some limitations on the advantages of a 15-year term policy for consideration before you buy. Think about every angle before you apply for a policy and get quotes from Sproutt.

Possible Pitfalls of 15-Year Life Insurance Terms

Sproutt sees tremendous advantages in getting a 15-year policy for your term life insurance, but it’s important to measure each possibility alongside your ideal features of a life insurance policy. You can’t predict the future of course, and, ideally, your term policy never needs to activate, but some things are missing from 15-year terms:

  • Level premiums end immediately upon the 15-year mark
  • Terms don’t include whole life features like cash value or investment
  • Some plans may not be available to people of advanced ages like over 65

While a shorter term is an advantage for premiums, it may not cover the amount of time that many people need to give security and financial protection to their loved ones. Because the term is shorter than other such policies, it may make the most sense for those getting insurance later in life or those who really need the lowest rate. In short, once the policy closes, your beneficiaries will lose their safety net, and you may need another life insurance option.

In addition to this, you won’t be able to add on the other benefits of life insurance that you might already be familiar with. Some, for example, are interested in accumulating cash value on their policy and using it as a financial resource. That’s just not possible with a term policy.

Moreover, those who seek a policy to cover their final years will find it difficult as they grow older. So, it’s most ideal for a younger group still active in their career, getting a raise at work (and in benefits), and not as likely to pass away statistically. If you seek coverage at a greater age, you will also end up paying much more than another, younger applicant because age is a major and considerable influence on insurance premiums. In fact, there is a big divide within insurance policyholders by age according to research by Statista.

Seek 15-year Term Insurance Quotes from Sproutt

Fifteen-year term life insurance attracts many people who desire to put financial security into their spouse’s, children’s, and loved one’s lives. The benefits and payouts of coverage contribute to a greater sense of wellness after a loss and lessen the blow of grief that is sure to take your place. Though most insurance brokers recommend a 30-year term to cover the most important life milestones comprehensively until retirement age, Sproutt can help you choose a shorter, more affordable policy if needed.

The smartest life insurance policy shoppers use advanced tools to hunt down low premiums and full benefits. Sproutt uses market data and industry-leading technology to generate the lowest and most accurate quotes from the most trusted insurers in the nation. Be certain that you’re getting the fairest rate on your policy, and compare premiums on Sproutt.com.

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