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Summary: A reader asks how long his term insurance should run, given that his homemaker wife will depend on him financially. The response walks through how to think about the right coverage period.
What is the ideal duration for term insurance? My wife is a homemaker, and she will be dependent on me. Should I buy a term plan for 85 years or for 60 years? – Tejas Sastry
Term insurance is a type of life insurance that pays a lumpsum to your family if you pass away during the policy term. Unlike some insurance products, it doesn't build any savings or investment value; it's pure protection, which is why it's usually the cheapest way to get a large amount of cover.
A term insurance plan is one of the simplest ways to protect your family from life's uncertainties.
Ideally, your term plan should run until age 60, the typical retirement age. By then, your savings should be enough to support you and your spouse, so continued life cover isn't essential.
If you were to pass away before 60, the term plan would step in to support your dependents, especially if your savings aren't yet sufficient.
Do remember to name your spouse as nominee across your investments and consider creating a Will, as this ensures a smooth transfer of assets to her.
That said, plans covering you up to 85 or beyond are also available. Just keep in mind: the longer the cover, the higher the premium.
Also read: Four tips to choose the best term insurance plan
This article was originally published on May 01, 2024, and last updated on July 01, 2026.
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