Most people looking to buy term life insurance want the best deal they can find. The problem is, the advertised 20 year term life insurance rates provided in the commercials are not always the rates you will end up with.
The reason is, there are a lot of variables that go into finding the lowest cost term life insurance.
That is why we wrote this article, so we can help provide information to our visitors that will help them find the lowest 20 year term life insurance rates available, based on each persons unique health and lifestyle.
20 Year Term Life Insurance Rates
20 year term life insurance is available for those 70 and under. Many people like the 20 year term because it is less expensive than a 30 year term life insurance policy, but you still get coverage for an extended period of time.
The following 20 year term life charts are based on ages 20-80 from top rated life insurance companies given an A- rating or higher from AM Best.
What Is 20 Year Term Life Insurance?
A good definition of a 20 year term life insurance policy would be a contract between the company and the applicant whereby the company extends life insurance coverage for 20 years to the applicant in return for a monthly or annual insurance premium.
It is important to understand that at the end of the 20 year term the policy will expire. Upon expiring, many policies allow you to renew the policy annually, but at an increased premium, usually exponentially higher than the previous premium payment you were paying.
Some terms to know
There are two terms you should be aware of when it comes to term life insurance. The first term is the word “level and the second term is the word “convertible”.
Level Term Life
Level term life insurance describes the type of term coverage. The word level connotes the idea that the cost of the term life insurance will remain the same for the duration of the term.
This is important because there are term policies that are not level, where the premium increases every 5 years or so, or the death benefit decreases.
So, make sure you are buying a 20 year level term life insurance policy, so you get a fixed premium and death benefit.
Convertible Term Life
Convertible term life insurance is a policy that allows you to convert all or a portion of your coverage into a permanent life insurance policy.
This is an important feature because if you decide you would rather have permanent coverage sometime in the future, you can convert your policy to a pre-approved permanent policy without having to qualify for coverage again, i.e. no medical exam or underwriting is needed.
How Much Does 20 Year Term Life Insurance Cost?
We provided the sample 20 year term life insurance quotes above, which provide pricing based on the best rate class, which begs the question,
“How Do I Qualify For The Best 20 Year Term Life Insurance Rates?”
And since not all of us are 25 years old in perfect health, there is a lot to consider when trying to qualify for the top rate class.
Who offers the cheapest 20 year term life insurance based on your health profile?
Life insurance underwriting considers various factors when assigning a health rating. The most prominent health factors include:
- Height to Weight ratio
- Age
When considering what company to apply with it is important to know the various niches each company caters to. Some companies offer more lenient underwriting than others for things such as:
- high blood pressure
- high cholesterol
- diabetes
So, to qualify at the best rates possible, you will want to apply with a company that will give you the best shot at obtaining the top rate class.
Rate Classes
Your rate class is determined by your health and lifestyle. Someone who is healthy but engages in risky behavior may not be able to qualify at the top rate class.
The life insurance rate classes include:
- Preffered Plus
- Preferred
- Standard Plus
- Standard
- Table Rated (A-F)
The Best 20 Year Term Life Insurance Companies
Some of our top providers of convertible term life insurance include:
You can read about these companies and more on our list of life insurance companies page.
Who Should Buy A 20 Year Term Life Insurance Policy?
The benefit of 20 year term life insurance is that it lasts long enough to provide financial protection for a young child. Most parents are concerned about providing for their kids until they reach adulthood and a 20 year term policy gives them peace of mind knowing the coverage will be in place until that time.
Another benefit of a 20 year term for younger applicants is there is not a big difference in the cost between a 10, 15 or 20 year term, usually only a few dollars more a month.
20 year term provides you with a long runway to get your financial house in order. However, if you need longer coverage, consider a 30 year term life insurance policy or permanent coverage, such as whole life.
Conclusion
Locating the most affordable 20 year term life insurance policy will often require more than simply doing a search on then internet and clicking the first result you come to.
Working with an agent who takes the time to understand what you need and can place you with the most favorable carrier for you, based on your unique health and lifestyle, can make all the difference in the world.
At I&E, we will take the time to ask you the right questions so that we can work with you to find you the most affordable 20 year term life insurance policy that best meets your needs, based on your unique goals and objectives.
So, what are you waiting for? Give us a call today to see what we can do for you.
