One of the most common questions we get from clients is whether they should enroll in a 20 or 30-year term life insurance policy. The answer is, it depends on what you’re planning for the future.
A 30-year term policy is one of the longest term policies available and is a good policy for those who foresee the need for coverage for a longer term. For instance, new homeowners who have a 30-year mortgage would benefit from this policy, as it would last until the debt is paid off.
This type of term policy is a good option for those who want peace of mind for the next 20 years, without having to pay the high premium of a 30-year policy.
New families, for instance, 20 years allows enough time for the children to become adults, and to be able to sustain themselves financially in case something were to happen to one of the policyholders. Also, in 20 years your income will (hopefully) be higher. This way once the policy expires and you’re faced with a higher premium, you’ll be better prepared financially to pay for it.
As you can see from the example pricing table below, a 30-year term policy costs more on a monthly basis than a 20-year term policy: