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20-Year Term Life Insurance

20-Year Term Life Insurance

Want financial peace of mind while paying off debt, starting a family, or preparing for retirement? Explore whether a 20-year life insurance policy is right for you.

What is 20-year term life insurance?

As one of the simplest and most affordable types of life insurance around, term life insurance is a smart move for many families. These policies provide financial protection for a set period of time, called a term length. Term life insurance typically comes in term lengths of 10, 15, 20, or 30 years, making 20-year term life insurance one of the longer term options available. The ideal term length for you depends on your current financial obligations and how long you expect them to last. When considering your financial responsibilities, make sure to include:
  • day-to-day living expenses
  • your mortgage
  • credit card debt
  • student loans
  • any other expenses your family would need to cover if you died

A 20-year policy is ideal for people who expect to have financial obligations that will end by the time the 20 years are up. If you have children who will be out of the house by then, less than 20 years to go on your mortgage, and no other big responsibilities on the horizon, this policy may be the way to go. As with all life insurance, though, timing is everything. If you think you’ll still have a spouse or children depending on you financially in 20 years, a 30-year policy might be a better fit. On the other hand, if you just have a few years before retirement or expect to have all your obligations paid off in the next few years, buying a shorter 10-year or 15-year policy can help you avoid paying extra for coverage you don’t need.

How does a 20-year term life insurance policy work?

After you buy your policy, you’ll pay monthly or yearly premiums throughout the term length to keep your policy active. If you die during this time, your beneficiaries will receive a tax-free cash payment, or death benefit. With no strings attached, they can use this payment as extra income, to pay off debt or end-of-life expenses, or even save as an inheritance for your children.

At the end of the policy, you can decide to extend your coverage for a higher premium, buy a new policy, or simply let it expire, which would end your coverage and payments.

Benefits of 20-year term life insurance

Affordable premiums

Term life insurance typically comes with much more affordable monthly or yearly payments than permanent life insurance. You may save even more if you’re young and healthy, and your life insurance rates won’t change, no matter what happens to your health.

Cover longer-term needs

Whether you’re paying off a 20-year mortgage or putting a child through college, a 20-year term policy can help you pay for longer-term needs.

Flexibility

If you decide 20 years down the road to continue your policy, many insurance companies will let you extend your coverage. You can also switch to whole life insurance if you decide you’d rather have permanent coverage.

You've got questions about 20-year term life. We've got answers.

Is 20-year term life insurance a good idea?

A 15-year term life insurance policy can be an ideal option if you have short-term insurance needs with a specific end date, such as a child’s graduation or your retirement. If you still think you’ll have major financial obligations 15 years from now, though, consider investing in a longer term length.

A 15-year plan is a more affordable short-term option than whole life. You’ll pay lower premiums while enjoying the same amount of coverage during your policy.

A whole life policy offers permanent coverage to protect your family, while also providing cash value that grows over time. Talk to a life insurance professional about your needs to determine which type of policy is right for you and your family.

Once your policy ends, there are several things you can do:

  • Extend it: In some cases, you may be able to extend or renew your term policy. Keep in mind that your premiums will increase based on your current age if you buy life insurance again.
  • Convert it: Need more insurance for a longer term? Some insurance companies will allow you to turn your term life insurance policy into a whole life policy to enjoy lifelong coverage.
  • Let it mature: If you no longer need your life insurance, you can simply let your coverage end.

That depends on which policy you choose. With a level or decreasing term life policy, your premiums will stay the same throughout your 15-year term. The premiums of an increasing term life insurance policy will rise every year, however.

Usually, yes. This exam is free to you and includes your height, weight, and medical history. A licensed professional may also take blood and urine samples. Your medical exam results can help determine your life insurance rates. At eFinancial, our goal is to make your medical exam convenient and fast. Get our tips for taking a medical exam here.

20-year term life insurance quotes through eFinancial

At eFinancial, we’re committed to making the life insurance buying process simple, affordable, and convenient for you and your family. We offer access to high-quality 20-year term policy products from over 20 top-rated life insurance providers. Our team of agents provide personalized guidance, so that you and your family can find the right life insurance company and policy for your needs. Want to get started? You can request your free, no-obligation online quote or call 800-957-9525 to talk with one of our agents.