The 40-year term life insurance policy is gaining traction among many younger buyers and those with long-term financial commitments.
This new innovative term insurance option allows forward-thinking buyers to lock in affordable rates for their entire adult lives.
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What is 40 Year Term Life Insurance?
A term life insurance policy offers guaranteed death benefits and level premiums for between 10 and 40 years.
With guaranteed premiums and death benefits throughout the policy, 40-year term life insurance provides a lasting layer of protection, no matter what happens in the years ahead.
This policy can be an excellent option for younger buyers who need more extended coverage but don’t want to commit to a permanent policy.
Since the term duration significantly impacts life insurance pricing, a 40-year term policy will cost more than other term lengths.
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 life insurance coverage.
Who Offers 40-year Term Life Insurance?
Who Offers 40-year Term Life Insurance?Do you know anyone who has purchased a 40-year term policy? Chances are, you don’t. That’s because most life insurance companies don’t offer coverage that lasts for four decades.
However, Banner Life and Protective Life have introduced a 40-year term life insurance contract and are currently the only insurance companies that offer this term length.
It’s good to know that Banner and Protective have excellent ratings from major rating agencies such as A.M. Best, S&P, Fitch, and Moody’s.
Banner Life
For years, Banner Life has specialized in offering cost-effective term life insurance policies with durations of 10, 15, 20, 25, and 30 years.
While AIG previously had the longest-term plan at thirty-five years, Banner now provides coverage for up to forty years.
Banner Life sells its inexpensive life insurance plans through a network of independent agents in every state except New York. William Penn has been the company’s New York subsidiary for over 28 years.
If you are a non-smoker, you can buy a forty-year policy anytime before age 45, while smokers need to purchase coverage before age 40.
Additionally, Banner Life offers healthy individuals the option to purchase term insurance without a medical exam and expedites underwriting with a phone-based assessment.
Banner 40-Year Term Life
- Policy name: OPTerm 40
- Issue age: 20-45 (age 40 for smokers)
- Minimum coverage amount: $100,000
- Maximum coverage amount: $10,000,000
- Policy riders: Waiver of Premium Rider, Term Rider, Children’s Rider
- Guaranteed conversion option: Yes
- Financial Stability Rating: A.M. Best (A+)
Protective Life
Protective Life is renowned for its competitive pricing on term life insurance durations ranging from 10 to 30 years.
They’ve also launched a forty-year term option accessible to non-smokers up to the age of 45 and smokers until they are 40.
To secure a policy from Protective, you must complete an underwriting process that includes a physical examination by a nurse.
The exam process includes collecting your medical history, measuring vital signs, and obtaining blood and urine samples for analysis.
Protective 40-Year Term life
- Policy name: Classic Choice Term 40
- Issue age: 18-45 (age 40 for smokers)
- Minimum coverage amount: $100,000
- Maximum coverage amount: $10,000,000
- Policy riders: Accidental Death Benefit Rider, Children’s Term Life Insurance Rider, Disability Benefit Rider, Extend Care Rider, Income Provider Option, Accelerated Death Benefit
Life Insurance Riders
Life Insurance Riders If you want to purchase term life insurance, consider adding optional riders to tailor your policy to your specific needs.
Let’s delve into some key aspects of the most common life insurance riders offered by Banner and Protective Life.
- Waiver of Premium Rider is a common benefit from most insurers at an additional monthly cost. The life insurance company pays your premiums with this rider if you become disabled for more than six months.
- Accelerated Death Benefit Rider is a living benefit that provides access to your policy’s death benefit if diagnosed with a qualifying terminal illness without restrictions on how the money is disbursed.
- Child Rider provides a small life insurance policy for the primary policyholder’s children until the child’s 25th birthday.
- Term Conversion Rider allows policyholders to convert their term policy into permanent coverage regardless of their health.
What Does 40-Year Term Life Insurance Cost?
What Does 40-Year Term Life Insurance Cost?Because only two companies offer this coverage, competition is less fierce for the longest-running term life insurance plan.
However, you will still want to compare quotes to find the most reasonable term life insurance rates.
The table below illustrates samples of how much a 40-year life insurance policy may cost you.
40-Year Term Life Insurance Rates for Females
| $250k | $500k | $1mm | |
| Age 25 | $21 | $34 | $58 |
| Age 30 | $23 | $39 | $72 |
| Age 35 | $29 | $52 | $92 |
| Age 40 | $49 | $90 | $174 |
| Age 45 | $77 | $146 | $285 |
*Monthly premiums for healthy, non-smoking females
Notice how much more affordable life insurance is for a 40-year-old female at only $90 per month compared to a 45-year-old female who will pay $146 monthly for the same $500,000 death benefit.
40-Year Term Life Insurance Rates for Males
| $250k | $500k | $1mm | |
| Age 25 | $25 | $43 | $73 |
| Age 30 | $30 | $54 | $102 |
| Age 35 | $37 | $70 | $134 |
| Age 40 | $61 | $113 | $219 |
| Age 45 | $96 | $186 | $365 |
*Monthly premiums for healthy, nonsmoking males
Look how much cheaper life insurance is for a 25-year-old male at only $58 per month, compared to a 40-year-old male who will pay $174 monthly for the same million-dollar death benefit.
The higher cost is because the longer your coverage runs into your life expectancy, the higher the risk of death. The life insurance company must charge you more for this additional risk!
Affordable Life USA makes finding the insurance companies with the most reasonable rates for people easy. Using our life insurance calculator, we will take a few minutes to compare Banner Life vs. Protective Life.
40-Year Term Insurance Rates
- Select Duration
- Select Amount
- Press Get Quote
Who Buys 40-year Term Life Insurance?
Who Buys 40-year Term Life Insurance?For individuals in their 20s and 30s, term life insurance is an affordable solution for securing significant coverage when financial burdens are heaviest.
Forty-year term policies cater to those under 40 seeking long-lasting security without the hefty premiums associated with permanent life insurance.
Plus, the money saved by not buying permanent coverage can be invested in mutual funds and retirement plans.
If you think you need a 40-year term life policy, it is vital to evaluate your current financial situation, future aspirations, and overall financial strategy.
REASONS FOR TERM INSURANCE PROTECTION
REASONS FOR TERM INSURANCE PROTECTION- Married: Most young couples can qualify for the most extended-term insurance plans, protecting them during their careers.
- Children: A level-term life insurance policy is perfect for couples with young kids at home.
- Income Protection: A 40-year life insurance policy is ideal for couples to cover their income from surviving family members.
- Mortgage Protection: The longest-term life insurance plan can be an ideal policy for people needing mortgage protection to cover a mortgage loan.
Nevertheless, many families do not want to commit financially to a term insurance policy that lasts four decades.
A great way to save money is to mix and match term life policies of different lengths, customizing coverage as your financial obligations evolve.
For instance, you could combine a cheaper 20-year term for income protection along with a more expensive 30-year term to cover your mortgage.
This strategy, known as laddering, can lead to savings by enabling you to drop unnecessary coverage.
Ultimately, the best term insurance plan for you hinges on your specific needs and budget constraints.
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Affordable Life USA is dedicated to providing comprehensive life insurance solutions to families and business owners throughout the United States.
For over thirty years, our agency has provided a platform for comparing hundreds of life insurance policies without the stress of high-pressure sales tactics.
Our experienced team of financial planners has helped thousands of clients obtain affordable coverage through our efficient online application process.
Our founder, Eric Van Haaften, expanded our consumer-centric sales model nationally by leveraging the influence of renowned publications such as Time, Newsweek, and The Wall Street Journal.
Eric acquired his love for quantitative analysis while getting his business degree from Ferris State University, which provided a solid foundation for his analytical approach to financial planning.
Eric Van Haaften, LUTCF
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