Key takeaways
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- 15 year terms offer a level premium and a guaranteed death benefit with optional riders to further customize your policy.
- If you’re paying off a 15-year mortgage or have other financial obligations that last a set period, a 15-year life insurance policy can provide the coverage and flexibility you need.
- You can use a 15 year term policy to bridge the gap between your final years of work and the start of your retirement.
What is a 15 year term life policy?
A 15 year term life insurance policy offers a set premium and death benefit for the entire term. The premium and death benefit can vary depending on your health, age, required coverage, and additional riders.
Why choose a 15 year life insurance term?
Since a 15 year term is on the shorter side (compared to a 20- or 30-year term policy), it will often be more affordable. If you’re young and in good health, you might want to purchase a shorter policy to take advantage of lower premiums. For more mature adults, life changes like retiring or paying off your mortgage may make a 15-year policy right for you. If you’re considering a 15 year term life insurance policy, ask yourself the following questions.
What will your health be like in 15 years?
If you are in excellent health now and believe you will be in almost as good of health in 15 years, you might opt for a 15 year term life policy now. When your term expires, you may consider a whole life policy for permanent coverage.
- Example: Juan is 22 years old and in excellent health. He doesn’t smoke and indulges in only a few beers on the weekend. Juan recently graduated college with a business degree and works at a large company with excellent benefits. He wants to invest but can’t afford it yet. He buys a 15 year term life policy that will pay off the student loans his parents cosigned in the event of his death. When the policy matures in 15 years, Juan will be 37 and may be ready to consider a whole life policy or another term life insurance plan.
Are you anticipating major life changes?
Perhaps you’re going to retire in a few years, your mortgage is almost paid off, or your kids are done with school. In some situations, you may want to bridge the gap with a 15-year policy.
- Example: Ellie is 50, and the 30-year term life policy she bought when she was 20 has matured. Ellie plans to retire in fifteen years when she’s 65 years old. Her children have completed their education but are still living at home. She has $75,000 remaining on her mortgage and wants to ensure the house and other debts are paid off in the event of her untimely death, so she selects a 15 year term life policy.
Talking to a life insurance agent can help determine what term length and type of insurance works best for you.
How much does 15 year term life insurance cost?
The cost of a 15 year term life insurance policy will vary depending on age, health, coverage amount requested, and other parameters. The table below shows how much a non-smoker could anticipate paying for a 15 year term policy at various amounts.
15-year term life insurance rates
Here’s what a person in excellent health could pay for a RAPID ecision® Life 15-year term life policy.
| Face Amount | $100,000 | $250,000 | $500,000 | |||
|---|---|---|---|---|---|---|
| Age | Male | Female | Male | Female | Male | Female |
| 25 | $14.18 | $14.01 | $18.27 | $16.75 | $27.41 | $24.80 |
| 30 | $14.18 | $14.01 | $18.27 | $16.75 | $27.41 | $24.80 |
| 35 | $14.44 | $14.09 | $19.58 | $17.40 | $30.45 | $26.10 |
| 40 | $16.36 | $15.57 | $22.40 | $20.23 | $35.67 | $31.76 |
Rates as of 2023
Get a quote to see what rates you may be eligible for.
What happens after the 15 year term ends?
At the end of a 15 year term, you’ll need to decide between several options, including:
Renew your existing policy
If you have a renewable term life insurance policy, you may be able to extend coverage at the same rate. Renewal terms can be as short as one year and typically won’t require a medical exam.
Purchase a new term life insurance policy
After your term life insurance policy expires, you’ll have the option to purchase a new one. Keep in mind that you’ll need to re-apply for coverage and submit to a medical exam if required. The cost of a new term life insurance policy may increase from the rates you had previously paid since premiums generally rise with age. Luckily, companies like Fidelity Life offer affordable term life insurance coverage at any age.
Choose permanent life insurance coverage
Following the expiration of a 15 year term life insurance policy, you may find it’s the right time to secure lifelong coverage. A permanent life insurance policy offers a death benefit to support loved ones if you pass away and can accrue cash value which you can tap into during your lifetime if desired. While permanent life insurance coverage can be more expensive than term, the benefit of lifelong financial security can be worth it for some people.
Go without life insurance
While not generally advisable if you have financial obligations or someone who relies on you financially, there are certain instances where you may choose to go without life insurance coverage. If you’re financially independent with no debt when your 15 year term expires, you may decide to forego securing another life insurance policy. Before you go this route, it’s wise to work with a financial professional who can assess your situation to see if life insurance makes sense for you.
Find a 15 year term life insurance policy with Fidelity Life
Ready to consider a 15 year term life insurance policy? With Fidelity Life, you can get a life insurance quote online in a few minutes or contact a licensed insurance agent who can work with you to assess your needs and budget to find the right policy.
