20 Year Term Life Insurance
A 20 year term life insurance policy provides affordable life insurance protection for twenty years. The premium payment may be guaranteed (if you purchase a level term life policy) to stay the same for 20 years. The term life insurance premiums offer protection for your family or business at an affordable price however the term life insurance policies do not build cash value like a permanent or whole life insurance policy and the premiums do not earn dividends or interest.
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20 Year Term Life Insurance provides:
- A substantial amount of coverage for an affordable price for a 20 year period of time.
- The face value of the policy is paid to the named beneficiary if you die within the 20 year term of the policy.
- Some insurance companies offer a term conversion privilege which allows the policy holder to convert the term policy to a whole life policy.
- At year 21, some term life policies can be renewed at a higher premium for another term, without having to provide evidence of good health.
20 Year Term Life Insurance does not:
- Build cash value and the premiums are not eligible to earn interest or dividends
- Provide a payout if you outlive the 20 year term and do not convert the policy to whole life insurance or extend the term the policy. A term life insurance policy has no value and makes payout to beneficiaries after the term of the policy.
A 20 Year Term Insurance is Good Choice When:
- You have a temporary need for insurance protection, such as providing for repayment of a mortgage or a student loan in the event of your death.
- You have limited funds but need life insurance. 20 Year Term Life Insurance can serve as an interim solution for young people starting their careers. Later they can convert the term policy to a permanent or whole life policy when their finances improve.
- There is a need to cover outstanding loans for a business to ensure loans are paid and the lenders are secure and the business can continue if an owner dies.
Who is eligible to purchase 20 Year Term Life Insurance?
Most insurers will offer 20 year term life insurance policies for those who are over 15 and under 70.
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20 Year Term Life Premiums
Premiums will vary depending on the issuer, the amount and terms of the policy and the age, health and life style of the policy holder. Smokers or those with high risk occupations or hobbies will pay higher premiums as will those in bad health or with high risk family health histories. Term life insurance policies with conversion privileges or extension privileges may cost more.
Conclusion – Read the fine print
The key to obtaining the best 20 year term life policy for you is to shop around and read the policy proposals carefully to ensure the policy you choose has the terms and conditions that you desire and offers the benefits you are looking for at a price you can afford.
