When you purchase 30 year Term Life Insurance, it means you have life insurance coverage for 30 years as long as the periodic premiums are paid. In most cases, you cannot purchase term life for more than 30 years.
Since coverage will continue for 30 years, the majority of insurance companies will not issue a policy to an applicant over age 50. But the good news is people who are older than 50 can buy a 20 or 25 year term policy.
Term life insurance is super-affordable, and coverage amounts are typically available for up to $5 million.
The most important takeaway, however, is finding out that you can convert your 30-year term life insurance to permanent insurance and not have to go through medical underwriting.
It’s also important to note with 30-year level term insurance, your monthly insurance payment will not go up during the entire 30 years of coverage, even if you become seriously ill or have to live in a nursing home.
A 30-year term policy is straightforward, with virtually no moving parts. It’s the simplest form of life insurance because there is no cash component attached, and the fees are nominal.
Once your policy is issued, you simply pay your periodic premium (monthly, quarterly, or annually), and if you die anytime during the 30 year policy period, the insurance company will pay your beneficiary the death benefit in a tax-free lump sum payment.
A 30 year term life insurance policy consists of three simple guarantees.
When it comes to the pros and cons of any life insurance, the advantages and disadvantages will depend on why you purchased the policy in the first place. In other words, your need for life insurance should determine the type of life insurance you purchase.
The pros and cons of a 30-year term life insurance policy compared to a permanent policy like whole life insurance are rather apparent.
To determine if a 30 year term policy is right for you, we always go back to your reason for buying life insurance in the first place.
Most people buy 30 year term insurance to replace their income so that surviving loved ones can continue on without financial hardship.
To calculate the death benefit needed to replace your income, you or your dependent can easily figure out the benefit amount you’ll need using a method called a “needs analysis.”
A needs analysis takes into consideration all of your assets and liabilities, the estimated cost of college for your children, the payoff amount of your mortgage, the funds needed for your spouse or partner’s retirement plan, and living expenses needed for surviving loved ones for a number of years that you determine.
By using a life insurance needs analysis, you can easily determine and then cover the financial risks that keep a lot of people up at night.
Since term life insurance does not build cash value and is not considered an asset, the best method for deciding which policy is best for you is to consider the monthly cost of coverage.
Applicant Age $250,000 $500,000 $1,000,000
25 $21.27 $35.90 $65.03
30 $22.54 $38.54 $68.47
35 $24.31 $41.39 $76.21
40 $33.47 $59.66 $111.34
45 $50.95 $94.07 $181.31
50 $79.86 $151.57 $286.35
Applicant Age $250,000 $500,000 $1,000,000
25 $17.58 $26.75 $45.86
30 $18.36 $30.91 $54.37
35 $21.01 $34.87 $61.85
40 $27.16 $47.03 $88.02
45 $38.53 $70.03 $131.90
50 $59.03 $108.01 $208.33
Although the rates posted above are actual, all rates are subject to underwriting. For an accurate rate for your actual age, please use our instant quote form on the right side of the page or at the top if on mobile.
Whether you are purchasing fully underwritten or no medical exam term life insurance, there will be medical underwriting involved. To properly determine your health class and eventual rate for life insurance, the insurance company must measure your health risk.
Life insurance companies will use all or some of the following underwriting procedures to determine your health risk:
NOTE: Even if you elect to purchase no exam term life insurance, it’s critically important to be truthful on your insurance application because every insurance policy will contain a contestability clause. This clause represents a period (generally the first two years) when an insurance company can investigate your application for false medical information and omissions.
The good news, however, is that your life insurance company will generally offer an insurance policy even if you have preexisting medical conditions, although at a higher rate.
If you do not medically qualify for 30 year term life insurance, your independent agent will offer an alternative product with more liberal underwriting guidelines.
Independent insurance professionals generally have access to many highly-rated insurance companies that offer various life insurance products to accommodate applicants with severe or multiple health conditions.
If you want to make certain that you are getting the most competitive life insurance quote, you’ll need to access all of the highly-rated insurance companies that offer the product you’re looking for.
Many years back, this could only be accomplished by spending hours on the telephone speaking with agents or customer service reps at various agencies or insurance companies.
Thankfully, with 21st-century technology, any insurance shopper can contact one independent insurance broker and instantly retrieve life insurance quotes from almost all of the highly-rated national insurance companies.
If you prefer using the no medical exam life insurance option, you can get quotes from multiple companies, which makes sense if you are in average or above health.
You most probably won’t pay higher premiums than you would for fully underwritten life insurance, and the inconvenience of a medical exam disappears, and the application is generally approved in a matter of days instead of weeks and even months.
The top insurance companies that offer no exam 30-year term life insurance are:
It’s important to note that life insurance companies offering no exam 30-year term life insurance generally cap the death benefit at $1 million.
Question: Should I get a 20 or 30-year term life insurance policy?
Answer: Your choice of 20 or 30-year term life insurance should depend on your circumstances and specific need for life insurance. With either type of policy, you can typically convert the policy during or at the end of the term to permanent life insurance without having to go through medical underwriting.
Question: What happens when term life insurance expires?
Answer: Although not every insurance company operates the same, in most cases, you can renew the policy on an annual basis and convert the policy to a permanent one, or let the policy expire and then buy a different one according to your needs at that time.
Question: How much is the average 30-year term life policy?
Answer: Your rate for a 30-year term life policy will primarily depend on your age, your health history, and the amount of life insurance coverage you want to buy. Simply click here to see what you can expect to pay for your 30-year policy.
Question: What is the best term life insurance policy for a 30 year old?
Answer: The best term policy for a 30 year-old is a policy that will meet your specific needs for life insurance and will comfortably fit your monthly budget. It’s always best to speak with an independent insurance professional to design a strategy that will best accommodate your circumstances.
For more information about 30-year Term Life Life insurance and to see if it’s the best fit for you, call the insurance professionals at LifeInsure.com at (866) 868-0099 during normal business hours or contact us through our website.
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