A term insurance plan is one of the essential financial tools in your life. You must buy term life insurance coverage if you have dependents or relatives who would suffer financially who are dependent on you financially.

The term of the policy is the time period for which financial protection will be available to your family in case of an unfortunate event. Therefore, the duration of your term insurance plan should depend upon the time when you see yourself fulfilling all your financial goals. It is not necessary to opt for the maximum duration available. Besides, here are the following factors that you need to consider while deciding on the duration of a term insurance policy

a) Your Financial Liabilities

Your financial liabilities will help you decide the term of the policy. For instance, if an individual has a loan of 10 years, then the duration of the term insurance policy needs to be 10 years.

b) Dependents in your Family

Considering how long your loved ones will be financially dependent on you will help you decide the term of your policy. Term life insurance policies help your dependants pay for their lifestyle expenses in your absence. For instance, if you are the sole breadwinner of the family, then buying a term policy for long duration would be helpful.

c) Large One-Time Expense

It is the maximum one-time expense that can arise in future. Your family’s financial status also plays an important role in deciding the term of the policy. For example, if your child’s age is 10 years and you buy a term insurance to provide coverage till your child’s marriage or higher education, then the duration of your term insurance policy could be 20-25 years.

d) Your Age

For instance, your current age is 30 years and you opt for a 10-year plan, your term insurance plan will expire when you will turn 40. There are less chances that you will need coverage before this age. Moreover, if you even consider buying a term plan at this point of time, then it will cost you a lot. Therefore, it is advisable to buy the best term insurance plan at a younger age but for a longer duration.

When you're young, you're more likely to find cheaper premium insurance because your mortality risk is minimal. You may also have additional debts, liabilities, and financial obligations later in life. As a result, it is preferable to purchase a term insurance policy when you are young, preferably in your twenties. As soon as you start your first job, you should purchase term life insurance plan. Premiums increase as you get older. As a result, the sooner you buy - the better. As you become older, you get closer to your life expectancy, which increases your insurance costs.

Riders are optional in-built covers that you can opt for to enhance your term insurance plan. You have to pay additional cost to add riders to your term insurance plan. Listed below are a few common riders that are available with a term insurance plan: