If you are trying to decide what type of term life insurance to buy, this blog post will discuss 30 year term life insurance rates as compared to other term periods, when you might want to consider a 30 year term policy, strategies on how to keep the costs of life insurance low, as well as which companies to consider when comparing 30 year term life insurance rates, and examples of some life insurance quotes.
There are several life events that occur in people’s lives that lead them to looking for life insurance. If you have decided that you are going to be buying a term life policy, here are some reasons why you might want to consider going with a 30-year term policy as opposed to a 25,20,15 or 10 year term.
If you have recently bought a home and took out a 30-year mortgage, or perhaps refinanced your mortgage to a 30 year term, then buying a life insurance policy for a 30 year term period would make sense.
If you have recently gotten married and plan on having a family, 30 year term life insurance would make sense. This way if you have a child over the next 1-5 years, you would still have 25 years left on your life insurance policy, which would help insure that you have life insurance in place until your child is on their own, and hopefully not relying on you as their main source of income or support.
Many of my clients choose to get a 10 or 20-year term life insurance policy when they are in their 50s or older. The reason for this is that a 10 year policy for example is significantly cheaper than 20 year or a 30 year term policy, and often time it’s an affordable option for getting life insurance until retirements.
I do however come across individuals that have a history of longevity in their family, or simply want to have term life insurance in place for as long as possible. In these cases a 30 year term policy would make sense. Not every life insurance company will offer a term life policy that is still in effect into your 80’s, but some carriers, for example Transamerica will insure you into your 80s with a 30 year term life policy.
Often times choosing a term period that works best for you comes down to price. Everyone would like to have their insurance in place for as long as possible, but finding an inexpensive term life insurance option that is affordable to you and your family is important as well. So what does 30 Year Term Life Insurance actually cost?
The only way I can tell you exactly what it may cost for you is by providing you with a customized life insurance quote, however for the purposes of example, I will quote a Preferred Plus Non Tobacco Rates for a 30 year old Male, a 45 Year old Female, and a 55 Year Old Male all for $250,000 of coverage. I’ll also compare those rates to a 20 year term policy so that you can see the difference. Note that these quotes are for level term life insurance and that they are for someone with a health rating of Preferred Plus – which is the best health rating.
30 Year Old Male $250,000 Term Life Quote at Preferred Best Non Tobacco
Best Price is Currently with SBLI for both a 20 & 30 Year Term Life Policy
20 Year Term Life Insurance Rates $150 Annually
30 Year Term Life Insurance Rates $217.50 Annually
The different in the pricing is well worth the extra 10 years in my opinion.
45 Year Old Female $250,000 Term Life Quote at Preferred Best Non Tobacco
The best price is also with SBLI for both the 20 & 30 year term:
20 Year Term Life Rate $270 Annually
30 Year Term Life Rate $412 Annually
As you can see, a bigger price difference here than for the 30 year old male.
For a 55 year old male a $250,000 Term Life Quote at Preferred Best Non Tobacco
The best price for the 20 year is with SBLI, and the best price for the 30 year is with Banner Life.
20 Year Term Policy: $765 Annually
30 Year Term Policy: $1,557 Annually
As you can see, the older you are, the wider the price difference between a 20 and 30 year term life insurance policy.
While I work with over 30 term life insurance companies, the term life companies that seem to have more competitive rates for 30 year term life insurance are:
North American Company for Life and Health
Every one of these companies has an A or A+ rating with A.M Best and I can help you compare life insurance rates among these and atleast 20 other companies to help you find the best rate for 30 year term life, or another type of life insurance.
One approach to reduce the overall price on your term life insurance is to purchase 2 policies instead of one. How would this work?
Let’s say you are looking for a 30 year term life policy for $500,000. Instead of buying that policy, an approach to save money would be to purchase a $250,000 30 year term policy, and a $250,000 20 year term policy. Since the 20 year term policy is cheaper, this strategy would be cheaper than buying the entire amount in a 30 year term policy. This also allows you to have insurance that will last 30 years, however some of it will run out after 20 years. By using this blending strategy you may be able to achieve your goal of having some insurance that lasts longer, and keep your costs down at the same time.
Author: Liran Hirschkorn