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.
We offer 40-year term life insurance as one of our most comprehensive protection solutions. With this policy, you’ll get guaranteed death benefits and fixed premiums remaining the same for four decades.
While the premiums are higher than our shorter-term policies (due to the extended coverage period), they provide excellent value for the right situation.
We often recommend this option to our younger clients who want lasting protection but aren’t ready for a permanent policy.
Plus, these policies can eventually be converted into permanent coverage 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?Many insurance professionals do not sell 40-year term life insurance, as it is not widely offered by major insurance companies.
However, for informed insurance agents, it represents one of the industry’s most powerful long-term protection tools.
We represent the only two insurance companies currently offering 40-year terms: Banner Life and Protective Life.
Both are rock-solid, backed by top financial ratings from A.M. Best, S&P, Fitch, and Moody’s. This financial strength ensures policyholders can trust in the long-term stability of their coverage.
Banner Life
For many years, Banner Life has specialized in providing affordable term life insurance policies between 10 and 30 years.
Recently, the company has expanded its offerings to include coverage for up to forty years, setting a new standard beyond Corebridge’s previous maximum of 35 years.
Banner sells its life insurance plans through a network of independent agents in all states except New York. Its subsidiary, William Penn, has been operating in New York for over 30 years.
Non-smokers can purchase a 40-year policy at any time before they turn 45, while smokers must secure coverage before age 40.
Additionally, Banner Life offers healthy individuals the opportunity to acquire term insurance without a medical exam and speeds up the underwriting process through a convenient 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 our other go-to option for those considering long-term life insurance, particularly with their recently launched 40-year term option.
The company has established a strong reputation for competitive pricing across various term lengths, including 10 to 30 years.
Prrotective’s 40-year term is available to non-smokers up to age 45 and for smokers up to age 40.
While they require a quick in-home medical exam, their competitive pricing often makes it worth the extra step.
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
Who Buys 40-year Term Life Insurance?
Who Buys 40-year Term Life Insurance?We always advise our clients that timing is crucial when purchasing 40-year term life policies.
This is mainly because securing coverage at a younger age results in easier approvals and lower rates. Life insurance premiums typically increase by 8-10% per year.
Plus, those in their 20s and 30s often purchase forty-year coverage because it is only slightly more expensive than shorter-term lengths for younger buyers.
It’s become one of our go-to recommendations for anyone under 40 who wants rock-solid protection during their peak earning years.
Not to mention that the money saved compared to buying permanent insurance can go straight into their investment portfolios.
REASONS FOR TERM INSURANCE PROTECTION
REASONS FOR TERM INSURANCE PROTECTION- Married: A 40-year life insurance policy is ideal for couples to cover their income from surviving family members.
- Children: A level-term life insurance policy is perfect for couples with young kids at home.
- 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 middle-aged couples do not want to commit financially to a 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.
We recently had a client take out a $500,000 20-year term policy for family protection and a $300,000 30-year term policy for mortgage coverage.
Once the children become independent, the first policy can expire while the mortgage protection policy continues, potentially saving thousands in premiums.
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.
What Does 40-Year Term Life Insurance Cost?
What Does 40-Year Term Life Insurance Cost?Life insurance rates are primarily determined by age and health. The younger and healthier you are, the lower your premiums.
Many insurers allow younger applicants to get coverage via phone interviews, skipping the traditional medical exam.
While health history matters, don’t be discouraged—most minor health issues won’t prevent you from getting coverage. We work with insurers specializing in different health profiles to find options that fit your needs.
We have created a table below that outlines costs for a 40-year term policy, helping you better understand the potential premiums associated with this coverage.
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 |
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 |
Let me share a real-world pricing example from our clients, Mike and Tom, who co-own a construction business.
Tom, who is 25 years old, was surprised to discover he could secure a million-dollar life insurance policy for just $58 per month. In contrast, Mike, who is 40, would need to pay $174 monthly for the same coverage.
As business partners, they recognized that protecting their company’s future meant protecting each other, even though their premiums were significantly different.
Affordable Life USA makes finding the insurance companies with the most reasonable rates easy. Using our life insurance calculator, you can compare Banner Life vs. Protective Life in only a few minutes.
40-Year Term Insurance Rates
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Term Life Insurance Riders
Term Life Insurance Riders If you are considering purchasing term life insurance, think about adding optional riders to customize your policy to meet 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: This benefit allows the insurance company to cover your premiums if you become disabled for over six months.
- Accelerated Death Benefit Rider: This living benefit provides access to your death benefit if you’re diagnosed with a qualifying terminal illness, with no restrictions on fund usage.
- Child Rider: This offers your children a small life insurance policy until they turn 25.
- Term Conversion Rider: This allows you to convert your term policy to permanent coverage regardless of health status.
Eric Van Haaften
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Affordable Life USA offers comprehensive life insurance solutions to families and business owners throughout the United States.
Our founder, Eric Van Haaften, developed his passion for quantitative analysis while earning his business degree from Ferris State University, which laid a strong foundation for his analytical approach to financial planning.
