20 Year Term Life Insurance

 Are you interested in a 20-year term life insurance policy but are unsure of the specifics? You’ve come to the right place! 

We will explore the benefits of 20-year life insurance, how it works, and provide tips for selecting the best policy for your family.

 How does a 20-year term life insurance policy work?20-Year Term Life Explained

Term life insurance policies provide guaranteed death benefits and level premiums for periods ranging from 10 to 40 years.

When you choose our 20-year term life insurance policy, you secure a contract that protects your loved ones for two decades.

Should anything happen to you during this period, the insurance company will pay out a death benefit to your designated beneficiaries.

However, make sure that a 20-year term duration meets your future coverage needs because the premiums will increase after twenty years.   

20 year convertible term life

convertible twenty-year term insurance

If you surpass your policy’s initial 20-year guarantee, your options include renewing it, converting it to permanent coverage, or letting it expire.

Fortunately, if your term life insurance is convertible and you’ve outlived or underestimated your coverage needs, you still have viable choices.

For instance, if your existing policy has a conversion option, you can extend coverage beyond the initial term period. 

You can also convert it into a permanent cash value policy without answering health questions or taking a new medical exam.

So, if you have developed any health problems during the policy term, your rate class will not change with your new universal or whole life insurance coverage. 

20 Year Term Life Insurance

Why Buy 20-Year Term Life Insurance?

A 20-year term life insurance policy is one of the most practical and cost-effective solutions for protecting your family’s financial future.

We have found that the necessity and duration of personal life insurance hinge on your family’s financial obligations and your stage in life.

The beauty of a 20-year term lies in its perfect alignment with life’s major milestones and financial obligations.

This time span typically covers your children’s journey to adulthood, most of your mortgage payments, and your prime earning years.

A 20-year term resonates strongly with homeowners needing mortgage protection to safeguard their loans against unforeseen circumstances.

Twenty-year policies are often purchased during prime earning years, usually between 30 and 50, to replace lost income for surviving family members.

We recommend securing a death benefit of 7 to 10 times your annual income to help maintain your family’s standard of living in the event of an untimely death. 

Hopefully, after twenty years, you will have built significant savings, making additional coverage unnecessary.

Buy Term and Invest the Rest!

Instead of investing in costly permanent policies, consider opting for an affordable term policy to meet your immediate needs.

You can save money by avoiding permanent coverage and investing it in mutual funds, which offer the potential for higher returns. 

20 Year Term Life Insurance Rates Cost of 20-Year Term Life Insurance 

We’ll keep this simple: life insurance rates are based on age and health. The younger and healthier you are, the less you’ll pay. 

Many insurers allow younger applicants to buy coverage by only doing a phone interview instead of taking a traditional medical exam. Just a quick phone call and you’re done!

What about health history? Sure, it matters, but don’t let that scare you off. While medical conditions can impact your rates, most minor health issues won’t be a deal-breaker.

We partner with insurance companies specializing in different health profiles, so we can usually find solid coverage options for your situation.

Here’s the smart move: Lock in your rate for twenty years while you’re healthy. Once you’re approved, your price stays the same even if your health changes. Pretty sweet deal, right?

Want to see your options? Our quick quote calculator shows you exact numbers in minutes. Let’s find you the right coverage at the right price.

We have also included an overview of average 20-year term insurance costs by age, with death benefits from $250,000 to $1 million.

These averages apply to healthy, nonsmoking men and women. Women typically pay less than men for the same coverage due to longer life expectancies.

It’s important to note that premiums significantly increase as people age. For example, a $1 million policy costs about $1,106 at age 45 but rises to approximately $4,730 by age 60 for a male.

20-Year Term Life Insurance Costs for Men

 $250k$500k$1mm
453355911,106
504909001,697
557601,4412,744
601,3082,4544,730
652,3734,6498,925

20-Year Term Life Insurance Costs for Women

 $250k$500k$1mm
45245424724
503586421,124
555259751,848
608641,6543,108
651,5523,0295,698

20 year term life insurance quote

Best 20-Year Life Insurance Companies

Affordable Life USA partners with reputable life insurance companies to streamline the process of shopping for life insurance coverage.

Each insurer provides unique benefits that our agents can customize to suit your specific needs and budget. 

Our commitment to quality is reflected in our selection, as we only collaborate with insurers recognized for their financial stability and reliability.

According to prestigious rating agencies such as A.M. Best, S&P, Fitch, and Moody’s, these insurers have consistently demonstrated strong financial performance.

20-year term life

Banner Life 

Banner Life, which has an A+ rating from AM Best, unfailingly offers among the industry’s cheapest 20-year term life insurance rates.

Banner’s OPTerm offers healthy people between 20 and 50 up to $500,000 of term life insurance without a medical exam.

While Banner permits policy term conversions to its permanent coverage, these policies are costly.

20 years life insuranceCorebridge Financial

The Select-a-Term series, sold through American General, is notable for its 18 distinct term lengths, which offer a unique edge over the industry’s usual options.

Additionally, you can upgrade your term policy to a permanent one at competitive rates before you turn 70.

It’s also good to know that Corebridge Financial has an A rating from AM Best.

term life insurance quotes

Lincoln National

With an A+ rating from AM Best, Lincoln Financial is a reliable choice for term life insurance, with plan options ranging from 10 to 30 years.

The Term Accel is perfect for those needing coverage up to $1 million. To qualify for coverage, you need to have a short telephone interview.

Life Elements provides up to $5 million in coverage but requires a brief medical exam.

term life insurance quotes

Pacific Life

Here’s what I love about Pacific Life: they make it easy. With an A+ rating and 150+ years in business, they’re rock-solid.

In fact, US News recently ranked Pacific Life as their pick for the best overall life insurance company. 

Pacific Life’s PL Promise Term stands out for its relaxed underwriting and affordable term coverage ranging from 10 to 30 years.

Pacific Life does not require medical exams until age 70, provided you have had a doctor’s visit and blood work within the last 18 months.

You can also upgrade your term policy to an inexpensive universal life insurance plan to age 70.

20-year term life insurance rates

Protective Life

Protective Life offers two inexpensive term life insurance products, ranging from ten years to an industry-leading forty years!

Classic Choice delivers a traditional term experience with premium rising after your initial coverage duration.

But here’s my insider tip: Custom Choice is perfect if you want lifetime coverage. The death benefit adjusts after 30 years, but your premiums stay level forever.

Plus, both term plans offer conversion options that are some of the most flexible in the business. 

20 year term life insurance

Compare Term Life Insurance Plans

Over the years, we have found that some situations might call for shorter or longer-term insurance durations. 

You can choose decreasing-term or other level-term policies to meet your needs at a reasonable cost.

We recommend a 10-year term policy for those wanting to cover specific short-term financial obligations without breaking the bank. 

A 20-year term policy is ideal for those in their prime working years, providing family protection and flexibility for changing financial needs. 

However, according to Money, younger people with long-term financial obligations should consider buying a 30-year or 40-year term policy.

Our clients often save money by staggering the lengths of two different term policies to match their changing financial responsibilities.

Life insurance laddering can help reduce costs, as clients can cancel one of their policies when no longer needed.

Using our free term life insurance calculator can streamline decision-making and ensure that the policy you choose aligns with your personal financial planning goals.

twenty-year term life

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20 year Life InsuranceFAQ: 20 Year Life Insurance

Do you get money back if you outlive term life insurance? If you live past your term, you won’t get any money back unless you opt for an ROP insurance rider. This rider ensures that if you outlast the policy, you will be eligible for a tax-free return of all the premiums paid during the term.

What happens after my 20-year term policy expires? After the term period ends, some insurance companies may terminate your coverage. Alternatively, some insurers offer an option to extend it yearly at higher premiums. Another option is converting it into permanent life insurance. 

Can you cash out a 20-year term life insurance policy? It is not possible because term life insurance has no cash value component. Term coverage only provides a death benefit if you die during the policy’s term. 

Is it better to buy 20 or 30-year-term life insurance? The choice depends on your specific needs, budget, and life stage. Selecting a more expensive 30-year term is usually the best idea if you have a 30-year mortgage. For those only needing to replace their income, a 20-year plan might do the trick at a cheaper cost. 

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