20-Year Term vs 30-Year Term Life Insurance
I recently had a client who was deciding between a 20-year level term and a 30-year level term policy. He was in his late 30’s, married, 2 young children with 28 years left on the mortgage. He ultimately chose the 30 year term, and now he’s was very happy knowing his young family will be protected for the next 30 years. Choosing the correct term is going to come down to answering the right questions and on how much more money you want to spend on a policy.
Here are some important factors to consider when choosing your term:
-How many years do you want to protect your income?
-How old will your children be when your term expires?
-Do you plan on paying for your children’s post-secondary education?
-How many years are left on your mortgage?
-Does your spouse work?
-When do you plan on retiring?
At what age can you retire based on your income? Use the retirement calculator
Here are sample costs for a 20-year level term vs. 30-year level term:
30 Years Old
$250k 20-year term= $14 month or $155 a year—$250k 30-year term = $20 or $232.50 a year
40 Years Old
$250k 20-year term= $18 month or $210 a year—$250k 30-year term= $30 or $345 a year
50 Years Old
$250k 20-year term= $43 month or $497.50 a year—$250k 30 year term= $69 month or $795 a year
How much life insurance do you need? Use the life insurance needs analysis calculator
Term life insurance rates are very affordable right now. See for yourself, what rates you can get!
*Rates as of 12/3/12. Rates are for the Preferred Plus rate class for a non-smoker.