Why 30 Year Term Life Insurance Is Your Best Option
If you are looking into life insurance to protect your family’s financial future, it can become overwhelming, especially when you are trying to decide if you should go with a 20 year or 30 year term life insurance policy.
And guess what:
Since you know that you want a term life insurance policy, figuring out how long your family should remain protected creates a new question and a new quest for information.
Today you will learn everything you need to learn about a 30 year term life insurance policy, why it’s your best option, a review of some sample rates, and how to get instant quotes.
Is 30 Year Term Life Insurance Your Best Option?
The most important thing to do first is to determine if you can even purchase a 30 year term policy.
On average, the age for obtaining a 30 year term usually end around 50 or 51.
So... If you are at this age, it’s going to take a bit more than just searching online to find a 30 year life insurance policy.
You probably need to deal with an insurance agent like my friend Chris who can more research for you much faster.
When you are dealing with term insurance, you have a few options to choose from; 5, 10, 15, 20 or 30 year term.
This means that when your term ends, it’s time to renew your policy or let it lapse; this is why you want to go with a 30 year policy.
You don’t want to have to apply for life insurance every 5 or 10 years with rate increases along the way, you want to go with the longest time to keep your rates locked in and your prices low.
Locking In Your 30 Year Term Rate Is Best
A 30 year term will always have the highest price tag with your initial quote.
However, if you do the math, a 30 year term becomes the most affordable option, this happens because as you age, the price of life insurance increases.
We have two people Joe Goofy and Joe Serious.
Joe Goofy decides to purchase a 5 year term and Joe Serious purchases a 30 year term.
In the beginning, Joe Goofy will have a super low rate, lets say $15.00/month for 5 years.
Joe Serious would have a higher rate of lets say $30.00/month for 30 years.
Here is why Joe Serious made the best choice:
In 5 years, Joe Goofy will be 5 years older and he will have to renew the policy.
Being 5 years older now, any policy that Joe Goofy would purchase will now be higher in price.
However, Joe Serious will still be enjoying his low $30.00/month rate and over timer, save the most money.
If the price is an important factor for you, then getting a 30 yr term life insurance policy is a no-brainer.
30 Years Of Coverage
Another great benefit is that a 30 year term matches the same term you will most likely have on your mortgage.
This means that if you pass away, you leave your family the means to pay off your home and have peace of mind while they grieve your death.
This also gives you almost 30 years to not think about Life Insurance.
I can’t remember the study, (if you know it, please send it, and I will give it credit) but it showed that people would instead do their taxes than to start shopping for life insurance.
We all know that we need it; however, it can be such a pain that we don’t want to get into it.
The reason that I say almost 30 year is because it’s important to start deciding what options you want to take as things get closer to your policy renewal date.
As you see, there are plenty of benefits for having a 30 year term life insurance policy.
How Much Does 30 Year Term Life Insurance Cost?
This is a tricky question since the cost is going to vary for everyone.
Life insurance companies use a few metrics to determine what your rate is going to be:
Your gender is going to be the first determining factor used in determining your 30 year term life insurance rates.
In general, women will always receive better pricing than men because they tend to live longer than men on average.
Age is the next factor that an insurance company is going to use when it comes to life insurance and a 30 year term
Knowing your age is important so that they can determine the probability of how long you might have left to live.
This is why it’s hard to find 30 year terms for people over the age of 50.
In 30 years that would make them 80+ years old and the probability of death much higher.
We have a great post that list all the term life insurance rates by age.
The next thing that makes a huge difference in your cost is going to be if you smoke or not.
If you smoke, you can expect to see your cost shoot up to almost double the price of someone who doesn’t smoke.
This can be an excellent reason to stop smoking; there are even some companies that will consider you a non-tobacco user after just 12 months of not smoking.
If you aren't sure of the tobacco user requirements you might need to reach out to an agent.
Finally, they will look at your overall health; this area is going to be different for everyone.
Your weight is also considered in an application for life insurance.
You might be very healthy and take no medications, but if you have a below average or above average weight, it can affect your monthly costs.
Let’s check out some rates below:
30 Year Term Life Insurance Rate Chart Samples
Why 500k Life Insurance Is Best With 30 Year Term
The median income in the United States is $59,039, and the average mortgage is right below $223,000.
This means that if you had a $250,000 term policy, at most, it would be able to pay off your home, but nothing much more.
Your family would still be minus an income and now almost out of cash.
A 500k life insurance policy gives your family the ability to pay off your home and also have money to cover things like day to day living and possibly college.
With the average income being just under $60,000, $500,000 in coverage is still less than the recommended 10 times your annual income and much less than my recommended 20 times your annual income.
However, $500k in coverage is a solid place to start for anyone.
It’s also a great coverage amount to start with because you may start at a lower income level when you purchase it.
With life events and job changes and moving into a career, that $500,000 life insurance policy would eventually make sense.
How To Get 30 Year Term Life Insurance Quotes
The easiest and fastest way to get some 30 year term life insurance quotes is to use our quote tool on the right of your screen.
The easiest and fastest way to get some 30 year term life insurance quotes is to use our quote tool below or by visiting our term life insurance quotes page.
We don’t need any personal information to run you a quote, this way you can decide if you want to apply for coverage or not.
The other option is to reach out to an agent or search other quoting sites.
But be warned that getting quotes on multiple sites can get you called over 100 times.
I wrote a guide here on how to avoid that.
Either way, choosing a 30 year term life insurance policy will help keep your family covered, your mortgage protected and your expenses level.
Thanks For Reading My Post... Before You Go!
What did you think of my post? Did I miss anything?
Sa El is the Co-Founder & CEO of Simply Insurance. He is a Licensed Life and Health Insurance Agent with over 10 years of experience in the industry. He is an Entrepreneur, Insurance Educator and Field Underwriter. Sa is on a Journey to get 1 Million Families insured.