The whole point of term life insurance policies is that they provide you with coverage when you need it the most— when you are still working and have family members who are dependent on you.
So depending on when you decide to apply for life insurance, a 10 to 20-year policy could suit you and your needs just fine. However, a 30-year policy does have multiple advantages that should be considered before you make your final decision.
You can always start comparing quotes using the free quote generator on this page, but keep reading to learn more about your term length options and getting the lowest rates possible.
Advantages of a 30-Year Term Policy
There are actually a wide variety of reasons someone may opt for a 30-year policy, but here are some of the key ones:
Purchasing a home is a huge investment, and many people take out 30-year mortgages (or mortgages similar in length) to do so. For this reason alone, a 30-year term life insurance policy makes sense.
When you’re buying life insurance, your mortgage is the biggest expense you’ll have to cover. If you have a 30-year mortgage, a 30-year term plan should give your family the money they need to pay off the loan.
Many newlyweds don’t immediately start thinking about life insurance when they first tie the knot, but the key is to start thinking about the future. For example, if you are a newlywed and are planning on having children within the next five years, getting a 30-year term policy now ensures that you will have coverage until your child is an independent adult.
The advantage to buying a life insurance plan before you have kids is the savings. You’ll save money on your coverage if you don’t wait to buy the plan.
When you’re thinking about your children, life insurance should be a huge part of the planning. If you were to pass away your spouse would have to care for your child with only one income. If this happens, your spouse will have to pay for childcare and more. Those bills are going to add up.
Planning for Old Age
It’s true that a lot of people in their 50s and 60s tend to get shorter term policies simply because it is a lot cheaper than a longer one. If you are in good health, however, going with a shorter policy actually doesn’t make much sense since you are probably not going to die within 10 years. A 30-year policy would then ensure that you have coverage until you reach old age. Not all insurance providers will offer you a 30-year policy at this point, but some (Transamerica is an example) are game.
Cost of a 30-Year Term Policy
Now that we’ve gone over the initial reasons why you may want to consider a 30-year term policy, it’s time to go over cost. After all, final decisions on different policy options very often come down to how much the premiums are going to be.
Since the cost of is determined largely by personal factors like health history, gender, age, tobacco use, etc., it’s impossible to predict exactly how much you’ll end up paying for a 30-year policy. That said, we at Bestlifequote.com have years of experience and work with 30 different insurance companies. So, we can give you an idea of what to expect with the following examples:
$100,000 Policy for 30-Year-Old Man, Nonsmoker
30-Year Term: $24 a month (Best price with Transamerica)
20-Year Term: $9 a month (Best price with Protective Life)
$100,000 Policy for 40-Year-Old Man, Nonsmoker
30-Year Term: $22 a month (Best price with Transamerica)
20-Year Term: $14 a month (Best price with Protective Life)
$100,000 Policy for 50-Year-Old Woman, Nonsmoker
30-Year Term: $42 a month (Best price with Protective Life)
20-Year Term: $23 a month (Best price with Protective Life)
So, as you can see, there is a somewhat significant price difference between 30 and 20-year terms. However, the pros do outweigh the cons in many cases.
How to Save Money on 30-Year Policies
If you do decide you want 30 years of coverage, there are a few different ways you can reduce your costs. For example, you can even buy two insurance policies rather than just one. What this means is that you can divide up the amount you want into two smaller policies.
For instance, say you want $600,000 worth of coverage. Rather than putting all of that into one policy, you can buy one $300,000, 30-year policy and one $300,000, 20-year policy. You still get insurance coverage that lasts a long time, but the rates will be cheaper this way.
One tip we give all of our customers is always shop around before you buy. Just by getting a few quotes, you could find cheaper plans. If you only get one quote, you could end up spending way more than you have to.
If you want to do all of the calling yourself, you can. It doesn’t take a life insurance genius to get a quality plan, but it does take a lot of time and knowledge.
Instead of going out alone, you can make one single phone call to us, and you’ll still get all of those quotes. If you make one call, then we can do the rest of the legwork for you.
We’ve built those relationships to service our customers as much as possible. We can bring you all those quotes, help compare them, and give you directions on which path to take.
Best Insurance Companies for 30-Year Policies
As mentioned, we work with 30 different insurance companies. Because of our experience, we know which companies work best with these kinds of policies. All of the following have either an “A” or “A+” rating with A.M. Best:
There are only some of the quality carriers we work with. If none of these work for you, that’s fine. We will do everything we can to connect you with the best plan out there.
Our agents aren’t new to the insurance world. They have seen just about every situation imaginable. If you need help, we would love to assist you in any way possible.
Maybe a 30-year term is good for you, maybe it isn’t. It can be a tough choice, but we can give guidance and ask you questions to determine how long of coverage you need and how much protection.
Don’t worry, we aren’t going to be your standard pushy salesperson who will call you every 20 minutes trying to convince you to buy an expensive policy.
When you’re ready, please give us a call at 888-552-6159. You can also start comparing quotes right away using our online form. If you have any more questions about 30-year policies, feel free to ask!