Are you considering term life insurance?
If so, then you are probably considering the amount of time that you should take for the extent of the term. Of the 20, 25 and 30 year term policies, for most people the 25 year term life insurance is going to be the best for the overall benefits.
20 and 30 year term life insurance is generally for more specialized cases and they do have their uses, but 25 year term life insurance fits more people overall, especially younger families who are just starting out, although, they can benefit people in different age groups as well.
Term life insurance is very important to handle the financial burden of a loved one who passes away. The needs of the family are still present when the breadwinner is no longer around.
If you’re like most Americans, if you were to pass away, you would leave your family with thousands of dollars in debt. The majority of families would have no way to pay for all of these unpaid expenses, but that is where life insurance comes in. It can give your family the resources they need to get through this difficult time without adding financial stress.
Choosing the right length for your type of life insurance needs to be geared towards the expected financial burdens which include paying the mortgage, auto loans, and other bills while covering the funeral expenses. It’s important that you find a balance between choosing the right term length and the perfect premium amount.
What follows are the advantages gained from choosing a 20, 30 or 25 year term life insurance policy.
20 year term vs. 25 year term
A 20 year term life insurance policy works well for middle aged and older people in covering the remaining expenses on their mortgages. These are the groups of people that in the next decade, they won’t have any children relying on their income.
Plus, with the children having grown up, making sure that the funeral expenses are covered.
However, a 25 year term policy may be just as beneficial depending on the circumstances, especially if their children have not quite left home yet. Those extra few years can make a difference in terms of coverage.
So, for 20 year term vs. 25 year term, the advantage for most people falls to the 25 year term policies.
25 year term vs. 30 year term
The 30 year term policy is generally more suited for young couples just starting out, especially if they have just purchased their first home on a 30 year mortgage.
This will ensure that if anything were to happen to them, they will be able to pay off the mortgage and not have to worry about losing the roof over their heads.
A 25 year policy is generally more suited for people who have already started paying on their mortgage for a few years or have taken out a shorter-term mortgage.
Again, depending on your circumstances you should choose the policy that extends your coverage just enough past your mortgage and kids growing up and leaving home.
For many, the 25 year term life insurance policy is more than enough while the 30 year term leans more towards longer commitments.
Expenses
You should not only consider the length of the term life insurance, but the amount as well to cover all of your expenses that incur if the breadwinner of your family should pass away.
These expenses include;
- Mortgage
- Funeral
- Household Bills for the next 6 months
- Cash reserve for unexpected expenses
These are only a few of the factors that you should consider when deciding how large of a policy you need to purchase.
25 Term Term Life Quotes
Here are some sample quotes on a 25-year term life insurance policy for a female. It should be noted that not all of the top life insurance companies offers the 25-year option.
| Sex | AGE | $250,000 Term Life Insurance Policy | Cheapest Quote 1 | Cheapest Quote 2 | Cheapest Quote 3 |
|---|---|---|---|---|---|
| Female | 30 | Face amount $250,000 | SBLI $15/mo | Protective $15/mo | American General $16/mo |
| Female | 40 | Face amount $250,000 | SBLI $22/mo | Protective $23/mo | American General $24/mo |
| Female | 50 | Face amount $250,000 | SBLI $48/mo | Protective $49/mo | American General $53/mo |
Here’s a screenshot that shows sample quotes for a 25-year term policy for a 30-year-old male.
As you can see, the quotes don’t have banner life insurance company in the mix, but some other great carriers are there.
The final amount should be to cover what you either may not have considered or for unexpected situations such as the family member dying away from home and needing transportation.
All in all, covering your expenses with term life insurance can greatly ease the immediate financial burden and bring about a little peace of mind when it comes to the financial situation.
You should also consider how much income your family would lose if you were to pass away and how would they replace that income? If you’re the main income-earner, your family could struggle to replace your salary. It’s important that your policy gives them enough time to find another source of income.
There is no “magic number”, but most insurance experts suggest that you purchase a policy that is around ten times your annual salary. This will give your loved ones plenty of time to recover and get back on their feet.
With such a large policy, a lot of applicants think they won’t be able to afford a policy that is ten times their salary but don’t worry, in most cases the policy premiums are much cheaper than you might think.
There are several ways that you can get a more affordable insurance policy without having to sacrifice any of the quality or coverage amount. The best way is to compare all of your insurance options before you make a decision. More than likely, the first company that you call isn’t going to have the lowest monthly premiums. Because there are so many companies that sell life insurance, it could take several days for you to call them and receive insurance quotes for your policy. Instead of wasting your time, let us bring the lowest rates to you. Simply fill out the quote form on the side with your information and we will provide you with the best rates.
We are independent agents, which means that we don’t work for one specific company. Instead, we represent some of the best-rated companies across the United States. Because we don’t work for one company, we are committed to bringing you the best policy to fit your needs, regardless of which company sells it.
Aside from comparing policies, there are several other ways that you can save money on your life insurance policy. One of those ways is to improve your health and kick your bad habits.
After you complete the paperwork for your applications, the company is going to send out a paramedic to complete a simple medical exam. During this exam, the company will look at your basic vital signs, like blood pressure, heart rate, cholesterol, weight, and they will also take a blood and urine sample. The medical exam doesn’t take long, but it will have a huge impact on your chances of being accepted for the policy and how much you’ll pay every month. If you want to save money, take the time to improve your health. If you think that your health is too poor or you have serious health complications, you can always choose a no-exam medical policy. You can get the coverage without the exam, but you will pay more for the plan.
The other sure-fire way to save money is to kick your bad habits like smoking cigarettes. A smoker buying life insurance is going to pay twice as much (sometimes three times as much) regardless of the rest of their health. If you want to get a policy for the most affordable rates, it’s time to kick those bad habits and enjoy some extra money in your pocket every month.
