20-year term life insurance is becoming increasingly popular. No matter which term of insurance you purchase, make no mistake it’s important to just buy it. In the event something happens to you, it’s the only way to make sure your family is taken care of.
As you’re thinking of buying the perfect life insurance plan, there are many factors that you’ll need to look at to make sure that your loved ones have the money that they need.
There are several different types of life insurance plans that you can purchase, but a common type is a term life insurance plan.
These are the most affordable kinds of life insurance and are an excellent option to give your family the protection that they need.
Life insurance can be confusing and the process of having one issued could be lengthy, but we specialize in making it quick and we’re happy to help connect you with the best life insurance policy.
Who Would Want to Consider Buying a 20-Year Term Policy?
The most common ages of people I see purchasing a 20-year term life insurance policy range between 25 and 45.
As mentioned above, many in this age range will have their largest asset paid off (their home) and if their savings are on track, should be close to being self-insured by the end of the term.
Affordability, maximum coverage, and policy length are three key aspects to nail down when looking to purchase a 20-year term.
And even if you wish to increase your face value you don’t want to overstretch your budget – it’s important to understand that there are many options in the marketplace to tailor the right plan to your needs.
How Much Does a 20-Year Term Policy Cost?
Below are some sample 20-year term life insurance quotes from some of the big carriers. As you’ll see, I ran 20-year quotes for $250,000, $500,000, and $1,000,000. I’ve listed the top 3 carriers for males and females of different ages (25, 35, and 45).
Please note that these quotes are subject to change depending on when you actually run the quote for yourself.
$250,000 20-Year Term Life Policy Quote
| Sex | AGE | 20Yr Term Life Policy | Company 1 | Company 2 | Company 3 |
|---|---|---|---|---|---|
| Male | 25 | Face amount $250,000 | AMERICAN GENERAL $154 | BANNER LIFE $155 | SBLI $158 |
| Male | 35 | Face amount $250,000 | SBLI $163 | BANNER LIFE $165 | GENWORTH FINANCIAL $178 |
| Male | 45 | Face amount $250,000 | SBLI $338 | GENWORTH FINANCIAL $339 | BANNER LIFE $340 |
| Female | 25 | Face amount $250,000 | SBLI $138 | AMERICAN GENERAL $139 | BANNER LIFE 140 |
| Female | 35 | Face amount $250,000 | SBLI $145 | BANNER LIFE $150 | MINNESOTA LIFE $155 |
| Female | 45 | Face amount $250,000 | SBLI $273 | GENWORTH FINANCIAL $274 | BANNER LIFE $275 |
$500,000 20-Year Term Life Policy Quote
| SEX | AGE | 20YR TERM POLICY | COMPANY 1 | COMPANY 2 | COMPANY 3 |
|---|---|---|---|---|---|
| MALE | 25 | $500,000 FACE AMOUNT | AMERICAN GENERAL $239 | BANNER LIFE $245 | VOYA (FORMERLY ING) $253 |
| MALE | 35 | $500,000 FACE AMOUNT | SBLI $265 | BANNER LIFE $265 | GENWORTH FINANCIAL $284 |
| MALE | 45 | $500,000 FACE AMOUNT | SBLI $615 | BANNER LIFE $615 | GENWORTH FINANCIAL $617 |
| FEMALE | 25 | $500,000 FACE AMOUNT | AMERICAN GENERAL $209 | SBLI $215 | BANNER LIFE $215 |
| FEMALE | 35 | $500,000 FACE AMOUNT | SBLI $230 | AMERICAN GENERAL $234 | BANNER LIFE $235 |
| FEMALE | 45 | $500,000 FACE AMOUNT | SBLI $485 | BANNER LIFE $485 | GENWORTH FINANCIAL $296 |
$1,000,000 20-Year Term Life Policy Quote
| SEX | AGE | 20YR TERM POLICY | COMPANY 1 | COMPANY 2 | COMPANY 3 |
|---|---|---|---|---|---|
| MALE | 25 | $1,000,000 FACE AMOUNT | AMERICAN GENERAL $414 | BANNER LIFE $425 | SBLI $440 |
| MALE | 35 | $1,000,000 FACE AMOUNT | SBLI $450 | BANNER LIFE $455 | NORTH AMERICA CO. $485 |
| MALE | 45 | $1,000,000 FACE AMOUNT | BANNER LIFE $1,155 | SBLI $1,160 | GENWORTH FINANCIAL $1,173 |
| FEMALE | 25 | $1,000,000 FACE AMOUNT | AMERICAN GENERAL $354 | SBLI $360 | BANNER LIFE $365 |
| FEMALE | 35 | $1,000,000 FACE AMOUNT | SBLI $390 | AMERICAN GENERAL $404 | BANNER LIFE $405 |
| FEMALE | 45 | $1,000,000 FACE AMOUNT | SBLI $880 | BANNER LIFE $895 | TRANSAMERICA $930 |
In case you’re curious about how much a $1 million dollar term life insurance policy costs in other terms, follow the link to check out a post on my other blog.
Should You Consider a 10 or 30-Year Instead of a 20-Year Term Life?
Obviously, this all depends on your situation. I can think of one client who took out a 10-year term policy and then was forced to renew it 10 years later.
She was so young that it would have been wise to do a 30-year term, but she settled for purchasing a 10-year policy. She was lucky in the sense that even though she was 10 years older, the premium was almost the same. If I were you, I would not bank on this strategy.
My buddy Phil from PT Money has the right thought process in buying his 20-year term policy. Phil writes,
I plan to self-insure in the future. Twenty years from now I won’t need life insurance. I’m planning on having at least $500,000 of my own at that point. I’m taking serious steps with my retirement and short-term savings so that as soon as I’m able I can drop life insurance and rely on my own stash.
Many people who purchase 20-year terms do so with the same mindset.
Why I Purchased a 30-Year Term Policy
Part of me knows that in 20 years I will be self-insured. So why waste the money, right? Good question. I’ve asked myself the same thing and my conclusion comes with losing my father in his late 60s due to heart disease and Type II diabetes.
Although I’m in excellent health now, I always play the “what if” card. And there’s some reassurance that from the ages of 54-64, my family will have that much more to take care of them if something happens to me.
Do I Need to Take a Medical Exam to Purchase 20-Year Term?
While yes, there are no medical exam term life insurance policies, it’s typically not suggested if you are in good health. The exam is very basic – just like going to your doctor’s office; expect the nurse come to you!
Every time I’ve had a medical exam, a traveling nurse has either visited my house or office and it literally took less than 20 minutes. It’s very simple and they are often willing to work around your schedule. FYI, I prefer if they can come to my house in the mornings since you are usually required to fast and I don’t like going too long without eating something.
No medical exam plans are always available for purchase should you need coverage in short order. However, it should be known that you will need to stretch your budget more because your monthly cost will be higher than the normal term plans. If affordability is your goal it’s best to apply for a standard plan.
Additionally, your purchasing power is not as high as you would imagine. Typically, the face value is capped at $25K for a nonmedical exam plan and you could leave yourself wanting more coverage which means buying two of these policies.
What Happens to My Policy After It Expires?
Good question. First things first. If you are truly worried about it, then you might want to consider just buying a 30-term life insurance policy.
Yes, it will cost a bit more; but at least you’ll rest assured that you’re covered for another decade. If you’re still dead set on a 20-year term insurance policy, then read on…
Typically, your insurance life insurance company will give you the choice to continue your policy on an “annual renewable basis”. What does that mean?
That means that you can keep your policy in force by continuing to pay the premiums. I’m sure you’re wondering what the catch is.
The catch is that the annual premium is now determined based on your current age which means it will be much higher; not what you locked in 20 years ago.
The one positive thing about the “annual renewable basis” option is that you don’t have to get a new medical exam.
So if you’re in bad health, this might be a good option for you so as long as you can afford the premium.
Don’t Forget Your Beneficiaries
It seems it talking about life insurance, we are always focused on the insured.
But the reality is that the only reason we are taking out the policy is for our beneficiaries.
The first beneficiary that is always selected is your spouse. No question.
After that you name them, and you’ll then want to list your children. While this all sounds basic – and it is – I’m amazed at how many people overlook this.
Another BIG mistake I see is when a divorce happens or a new child is born and the beneficiaries don’t get updated.
How to Get a 20-Year Term Life Insurance
If you want to get a twenty-year term life insurance quote for yourself, you don’t have to go too far.
Keep in mind the importance of getting life insurance coverage for your family.
No matter how long we think our lives will last being able to provide your family with financial security will last longer.
Bottom Line: Purchasing a 20-Year Term Life Insurance
Acquiring a 20-year term life insurance policy is a prudent step toward ensuring your family’s financial stability. Aimed primarily at individuals aged between 25 and 45, these plans are cost-effective and offer substantial coverage. While the premium rates differ among carriers and are based on the insured’s age, it’s essential to consider policy length and budget.
Medical exams, though basic, can influence costs, and while policies are renewable post-expiry, premiums may increase. Crucially, always update your beneficiaries, especially after significant life events. Remember, life insurance isn’t just about you; it’s a safeguard for your loved ones’ future.
Hello Jeff, I currently have Northewestern Mutal 250,000 Whole Life 20 yr policy with the remaining 10 yrs left at 175.00 a mo. I should of thought at the time and so should of my agent that I am going to probably out live my policy and now at 58 prices are so much more expensive. Now what do you think my solution should be? Go with a new policy with the same companr and just do term for 250,000 or 500,000 and drop the whole life. The quote I am getting with them is 250,000 (104 mo) and 500,000 (198.00 a mo). What is your opinion
@Debbie Really depends on what your objective is. Do you still feel you need that amount of life insurance coverage? Also, do you have any cash value built up on the whole life policy that you might be able to apply to a paid up permanent policy?
Regarding your rates, use our free life insurance quoter to see how our prices compare to what your Northwestern rep is quoting you. Feel free to give our office a call, too!
I think one can go for both policies. He can start with a term policy and in the mid of that he can convert that into permanent policy. Like he took a term life insurance for 20 years at the age of 30. when the policy get complete then he will become 50. That time if he goes for any insurance policy then he can’t get a good policy because of his week physical state. So he can switch the policy after 10 years completion. That time he will be of 40. His physical state will also be good that time so it will be easy for him to switch.
my question is if you get a 20 year term life policy and pass away before the 20 years if its a 500K policy do your beneficaries get only what you paid in? and if you pass away after the 20 years and dont renew do they still get the 500K? or do you have to renew it?
@ Denise A 20 year term policy is good for 20 years so as long as you make the premium payment. So if you’re paying on for 15 years and something were to happen to you, your beneficiaries would receive the $500k.
After 20 years the policy expires and you’ll then have the choice of renewing or converting it to a permanent policy. Keep in mind that it would then be based on your current health condition.
I got what you mean, thanks for sharing this. Thanks For Sharing info on a 20 Year Term Life Insurance Policy – Term Life Insurance.