Term Life Insurance Plans

Eric Van Haaften Apr 17, 2025 Term Life Insurance

Are you searching for the proper term life insurance plan for your family, but don’t know where to start or what options are available? Look no further!

We will discuss term life insurance, how it functions, and which plan best protects your family.

Whether you already have a policy or are just starting to evaluate coverage, our informative article will help you understand all aspects of this protection.

What is Term Life Insurance?

A term life insurance contract is between you and an insurance company with a contractual obligation to pay a lump sum of money to your heirs if you die.

Most people think of term coverage as pure life insurance because it has no cash value or investment component.

It’s good to know that term life insurance pays out a death benefit for any cause of death, whether accidental or due to illness, as long as the policy is in force.

However, if the insured commits suicide within the first two years of coverage, no death benefits will be paid out.

How does term life insurance work?

When you buy a term life insurance policy, the insurance company determines the premium based on your elected term duration (usually between 10 and 40 years) and death benefit.

You will also be assigned a rate classification based on factors such as age, gender, health, driving record, smoking status, occupation, hobbies, and family history.

All this pertinent information is gathered during the application process, often including a medical exam to assess your health.

Once approved, the insurance company will immediately pay your heirs the policy’s tax-free death benefit if you pass away.

According to US News, your beneficiaries can choose to receive the proceeds in a lump sum or a series of payments and can spend the money as they see fit.

What happens when term life insurance ends?

When your term period ends, your coverage ends unless you have options to renew or convert it.

Choosing a term length that matches your expected coverage needs is a good idea, as renewal rates increase each year after the initial term.

Fortunately, many policies offer a conversion option, allowing you to switch to more expensive permanent coverage without undergoing a new health examination.

If you still need coverage but don’t want to renew your current policy or switch to a permanent plan, consider buying new term life insurance coverage.

Remember that your new premiums will reflect your present age and health condition, resulting in higher rates than your previous payments.

Comparing Term Life Insurance Plans

Term life insurance is a fundamental element of financial protection for many families. It acts as a safety net for loved ones in case the unthinkable happens.

Term insurance is focused solely on protection, unlike whole life or universal policies that build cash value.

We recommend level-term policies because your payments and coverage stay the same throughout the policy.

Here are some common reasons why term life insurance can be beneficial in covering your family from financial disaster should you die prematurely.

Term insurance is often used to safeguard against mortgage obligations, ensuring families can remain in their homes without the stress of mortgage payments.

Moreover, term policies provide a safety net for spouses who are reliant on each other’s income until they reach financial independence.

For parents, term life policies offer a financial guarantee for their children’s higher education expenses, offering reassurance about their academic prospects.

Let’s examine factors influencing the choice of different term lengths and their average costs for healthy nonsmoking men and women.

10-year Term Life Plan

A 10-year term policy is the most economical type of life insurance coverage, providing maximum coverage at a minimal cost for a decade.

These policies excel at protecting shorter-term commitments, such as business loans, debt consolidation, or education funding.

Last month, we helped a 45-year-old business owner secure a $500,000 policy to cover a business loan. During her loan repayment period, she needed coverage for ten years, which only cost $24 per month.

Our agency offers 10-year term plans from numerous highly rated insurers. This coverage is available to applicants up to age 80, making it the most accessible policy option.

10-Year Term Life Premiums for Men

	$250k	$500k	$1mm
45	18	28	44
50	24	41	69
55	38	67	120
60	58	108	190
65	97	181	348

10-Year Term Life Premiums for Women

	$250k	$500k	$1mm
45	16	24	38
50	22	33	57
55	36	51	89
60	51	73	143
65	88	120	220

15-year Term Life Insurance

A 15-year term policy provides coverage for a fixed period of 15 years, offering a guaranteed death benefit and level premiums throughout the term.

It’s a great option if you need financial protection for a specific period, like paying off a mortgage, covering short-term debts, or ensuring your family has financial security while your children grow up.

With premium rates often lower than those of longer-term policies, it usually suits those in their 40s and 50s who are managing various financial commitments.

We partner with many reputable insurers that typically offer these plans until you reach age 75.

15-Year Term Life Insurance Costs for Men

	$250k	$500k	$1mm
45	22	35	63
50	37	54	160
55	45	86	182
60	67	127	243
65	114	256	471

15-Year Term Life Insurance Costs for Women

	$250k	$500k	$1mm
45	19	29	49
50	24	41	73
55	35	60	109
60	51	93	178
65	87	165	304

20-year Term Life Insurance

A 20-year term policy is one of our most popular product offerings. Industry statistics from Forbes support this, noting that over 40% of term insurance buyers choose this plan.

This policy offers guaranteed-level premiums and reliable coverage for two decades, which is ideal for long-term planning.

We can provide 20-year coverage options to those up to age 70 through several reputable insurance providers.

It’s worth noting that life insurance premiums typically increase with age. For example, a $1 million policy costs about $85 per month for a 45-year-old male, rising to approximately $373 by age 60.

20-Year Term Insurance Rates for Men

	$250k	$500k	$1mm
45	27	46	85
50	39	70	128
55	60	112	213
60	103	197	373
65	188	375	739

20-Year Term Insurance Rates for Women

	$250k	$500k	$1mm
45	22	37	66
50	32	55	96
55	45	84	157
60	75	139	262
65	131	255	475

25-year Term Insurance Plan

A 25-year term life insurance policy protects your loved ones for a quarter century and at a price that won’t keep you up at night.

It’s ideal for those with extended financial commitments, such as mortgage protection, or parents who want to secure their children’s future into adulthood.

We recently helped a young mother with two children set up an insurance policy. She wanted coverage to support her kids through college, and the 25-year term was ideal, giving her peace of mind until they start their careers.

The best part? You’ve got many options. While several insurance carriers offer these policies, we often recommend Transamerica because they’re more flexible with age requirements – you can apply until age 65.

25-Year Term Life Prices for Men

	$250k	$500k	$1mm
45	38	65	121
50	58	104	200
55	98	187	332
60	200	382	679
65	347	660	1,277

25-Year Term Life Prices for Women

	$250k	$500k	$1mm
45	30	50	92
50	45	78	149
55	69	129	244
60	147	266	508
65	131	542	1,067

30-year Term Insurance Plan

A 30-year term life insurance policy is one of our most popular choices for younger and middle-aged clients. Why? Because you lock in one predictable rate that won’t change for three decades.

This coverage safeguards you during your prime earning years, offering protection when it matters most. Whether you want to protect your income, cover mortgage payments, or secure your children’s education.

For instance, we recently sold a $250,0000 policy to a 55-year-old male client for just $118 a month to protect his mortgage, ensuring his family wouldn’t have to worry about losing their home.

If you’re middle-aged and considering a 30-year term, submit your application before you turn 56 to ensure eligibility.

30-Year Term Insurance Costs for Men

	$250k	$500k	$1mm
35	24	36	64
40	29	51	143
45	43	77	151
50	69	124	226
55	118	226	443

30-Year Term Insurance Costs for Women

	$250k	$500k	$1mm
35	20	30	52
40	25	40	73
45	35	59	113
50	58	96	177
55	82	54	298

40-year Term Life Insurance

With premiums guaranteed for four decades, 40-year term life insurance provides a lasting layer of protection, no matter what happens in the years ahead.

Forty-year policies are ideal for younger individuals seeking comprehensive protection without the financial commitment of a permanent plan.

For those exploring insurance options, it’s worth noting that only Banner and Protective Life offer 40-year term plans.

Due to the extended duration, policies are only available to non-smokers aged 45 and under, and to smokers aged 40 and under.

Let’s look at a real-world pricing example involving our clients, Mark and Tim, who co-own a construction business.

Tim, who is 35 years old, was surprised to find that he could secure a $500,000 life insurance policy for just $70 per month. In contrast, Mike, who is 45, would need to pay $186 monthly for the same coverage.

As business partners, they understood that securing their company’s future meant protecting each other, even though their premiums varied significantly.

40-Year Term Insurance Rates for Males

	$250k	$500k	$1mm
25	25	43	73
30	30	54	102
35	37	70	134
40	61	113	219
45	96	186	365

40-Year Term Insurance Rates for Females

	$250k	$500k	$1mm
25	21	34	58
30	23	39	72
35	29	52	92
40	49	90	174
45	77	46	285

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Tips for Buying Term Life Insurance

Let’s talk about getting you the right life insurance coverage. As your dedicated insurance advisors, we’re here to guide you through every step.

First, we’ll help you determine exactly how much coverage makes sense for your situation. We’ll consider your earnings, any debts you have, and your big financial goals.

While many people use online calculators, we’ve found that a solid starting point is usually around 7 to 10 times one’s annual income. But that’s just a baseline—we’ll work with you to fine-tune that number based on your specific needs.

The length of your insurance coverage is as crucial as the amount. We can match your term length to your key financial responsibilities.

Then, we will connect you with some of the most trusted names in the industry, including Lincoln, Protective, Pacific Life, Banner, Corebridge, and Transamerica .

Forbes’ latest analysis confirms that these companies continue to offer competitive rates and reliable service.

Finally, we’ll walk you through the application process, which usually involves a quick phone call or a medical exam at your home.

Be patient because the underwriting process typically takes a few weeks to a month. During this time, the insurance company’s team will review your medical results and might contact your doctors for records.

Remember, we’re independent agents, which means we work for you, not the insurance companies. We’ll make sure you understand all your options and help you navigate any bumps along the way.

FAQs: Term Life Insurance Plans

What riders come with a term life policy? The terminal illness rider is included with most term coverage and allows you to access part of your death benefits early when diagnosed with a terminal illness.

What is the main disadvantage of term life insurance? Term life provides protection for a specific period, not a lifetime. If the policy expires before your death, no death benefit will be paid to your beneficiaries.

Can you cash out term life insurance? You cannot cash out term life insurance policies as they do not accrue any savings. However, specific term policies may offer the option to convert into a permanent policy that does provide cash values.

Do you get money back after your term coverage ends? Term-life insurance policies do not refund premiums if you survive the policy term. Only specific policies, such as return-of-premium plans, offer this feature.

Can senior citizens buy term life insurance? Insurance companies typically have an upper age limit for term life policies, usually around 80. However, most seniors would be better off buying universal or whole-life insurance coverage.