downgrading from a 20 year term to 5 year term

[blueandwhite]

Hi all,

I'm in my mid-20's and signed up for a $1m 20 year term with Metlife about 1.5 years ago.
Someone has advised me it's better to go with a 5 year term, as I would probably be updating my policy within that time anyway.

I mentioned this to a friend, and he said making such a move is a disastrous mistake, as I would be paying more once the policy expires.

Feedback on this would be greatly appreciated.

Cheers!

[Mark Rosenthal]

I would have told you to upgrade your policy to a 30 year term.

DO you want a little or a lot of protection?

I would 1st have to ask you what are you protecting or why do you have insurance to start with?

It is very rare that someone buys a 5 year term policy. It is almost pointless.

You may also want to look at a 30 year term with ROP that give you all of your money back if you don't need it.

[blueandwhite]

I would have told you to upgrade your policy to a 30 year term.

DO you want a little or a lot of protection?

I would 1st have to ask you what are you protecting or why do you have insurance to start with?

It is very rare that someone buys a 5 year term policy. It is almost pointless.

You may also want to look at a 30 year term with ROP that give you all of your money back if you don't need it.

Hi Mark, thanks for your response.

I'm currently married with a couple kids. Protection just for the basics, and to also ensure all my debts can be repaid.

If I were to take a 5 year term today, is it foolish to assume I can upgrade back to a 20 or 30 year in a couple years?

Cheers!

[JMO Fan]

Wait 15 years. Then it will be a 5-year term. Your family will be grateful for your thoughtfulness, even if you live.
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[Mark Rosenthal]

Hi Mark, thanks for your response.

I'm currently married with a couple kids. Protection just for the basics, and to also ensure all my debts can be repaid.

If I were to take a 5 year term today, is it foolish to assume I can upgrade back to a 20 or 30 year in a couple years?

Cheers!

The best time to buy ins is when you are young and healthy.

I was lucky enough to buy my coverage young. I have a heart condition and can no longer buy more insurance. If I had not had insurance already, I would have been screwed.

There is a reason why people don't buy 5 year term policy any longer. You need coverage for a longer period. Kids maybe 20 years, home maybe 30 years. Also you can add some riders to the policy that would pay you money for having a heart attack, having a stroke, or getting cancer..

Go with a 30 year term, with ROP, and add a D.I. or C.I. rider. At the end of the 30 years, if you didnt' need any of the riders you would get 100% of your money back.

Buying a 5 year term policy is like buying a cheap condom. WHy risk it?