15 year term life covers you for 15 years at one fixed price. It usually fits people with a 15 year home loan, or kids who are a few years old.
CFPB says a mortgage term is how long you have to pay it back. 15 year loans have higher monthly payments but cost less overall. A 15 year life plan can match a 15 year home loan.
It also fits if your kids are about 3 or older. A 3 year old turns 18 in 15 years.
Who can buy it
OneAmerica: ages 18 to 75. Banner Life OPTerm: ages 20 to 75 (outside New York).
What happens when it ends
When the term ends, your cover stops unless you act. NAIC says most term plans can be renewed at the end, even if your health changed, but the new price is higher. Western and Southern says some plans renew one year at a time, and the price goes up each time. Banner says its rates rise every year after the level term, up to age 95. Many plans also let you convert to permanent cover with no new health checks. The price is based on your age when you convert.
Other term lengths
Common questions
Should my term match my home loan?
It is a good place to start. If you have a 15 year loan, a 15 year plan can cover it.
Is 15 years cheaper than 20?
A shorter term usually costs less per year than a longer one at the same age. Get a quote to see.
Can I still buy 15 years in my 60s?
Some insurers sell it up to age 75.
