Key takeaways for 20 year term life insurance
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- 20 year term life insurance policies guarantee a death benefit with a level premium for the duration of the term.
- There are several types of term products offering 20 year terms, and riders can expand coverage or add benefits.
- Consumers just starting out in their careers, young families, as well as mature adults nearing retirement may find a 20 year term life insurance policy provides the financial protection they need.
What is a 20 year term life insurance policy?
A 20 year term life insurance policy allows the insured to lock in a level premium rate and guaranteed death benefit for 20 years. This makes it an attractive term length for a wide range of people from young to more mature.
How much are 20 year term life insurance rates?
The amount of your 20 year term life insurance quote will vary depending on several factors, including the amount of coverage you want, your age, health, gender, and more. In general, younger, healthier applicants will often pay the lowest rates for term life policies. The rate table below shows average rates for an applicant in excellent health.
20-year term life insurance rates
Here’s what a person in excellent health could pay for a RAPID ecision® Life 20-year term life policy.
| Face Amount | $100,000 | $250,000 | $500,000 | |||
|---|---|---|---|---|---|---|
| Age | Male | Female | Male | Female | Male | Female |
| 25 | $15.57 | $14.88 | $21.53 | $18.27 | $34.37 | $26.97 |
| 30 | $15.57 | $15.05 | $21.75 | $18.71 | $34.80 | $27.84 |
| 35 | $16.27 | $16.01 | $23.06 | $21.32 | $36.54 | $32.19 |
| 40 | $18.10 | $16.79 | $27.62 | $25.23 | $46.55 | $40.02 |
Rates as of 2023
It’s easy to get your free 20 year term life insurance quote online today.
Why choose a 20 year term life insurance policy?
A 20 year term life insurance policy is a popular option for young, healthy people who are trying to protect loved ones in the event of their death, but who also aren’t interested in a pricier whole life policy with higher premiums.
More mature adults may find a 20 year term suitable for their needs as well. This policy length allows them to feel confident they have financial protections in place during a time in life when their children may be in college or their earning potential the highest. At the same time, it provides flexibility to consider future financial needs and planning.
There are many reasons that might make a 20 year term life policy right for you.
Provide for your family
If your children are very young, you want to provide for them (and your partner, if you have one) if something happens to you. A 20 year policy can help pay off the mortgage or send your children to college.
- Example: Patrick is 26 and has a wife and two small children. He’s healthy and doesn’t smoke. Patrick just bought a house, and his car also has a large note. He purchases a 20 year term life policy with a lower premium than available whole life insurance. If anything happens to him, he knows his wife and children will be provided for during what would be some of his peak earning years. Patrick feels comfortable paying the premiums as a “just in case” safety net for his family.
Settle debts
If you have large debts like student loans that your parents cosigned, or a mortgage you took out with a spouse, these debts could fall to your loved ones if you died. A 20 year term life policy could protect them by offering a payout that can be used to settle the debt.
- Example: Melissa took out loans to go to medical school and has almost $200,000 in debt. Her parents cosigned, with the agreement that Melissa would obtain and maintain a life insurance policy. Melissa doesn’t want her parents’ retirement to be compromised if something happens to her, so she opts to take out a 20 year term life policy.
Supplement an existing life insurance policy
If your family structure changes, you may want to adapt your insurance coverage to accommodate your dependents, as well as any new situation.
- Example: Jerome and his wife have divorced. They share custody of their twin 2-year old sons. Part of the divorce decree requires that Jerome maintain a life insurance policy with the ex-spouse as beneficiary until children reach the age of 21. Jerome wishes to name his soon-to-be new wife as the beneficiary of his existing whole life policy. so in addition, he takes out a 20 year term life policy with his ex-wife as beneficiary.
Talking to a life insurance agent can help you decide what type of insurance and what term length is best for you.
What happens after the 20 year term ends?
There are several options to continue financial protection for loved ones if you outlive your term life insurance policy .
- Choose a new policy or extend current coverage: If you like the coverage you currently have, you may be able to extend the policy or renew it in line with the terms you agreed to when you first opened the policy. If renewal isn’t an option, you can always purchase a new policy with terms and coverage to meet your needs.
- End coverage: If you originally purchased a 20 year term policy to cover a mortgage or support children during their college years, you may no longer have those pressing financial needs. In that case, you may decide to forgo having life insurance. Be sure to work with a financial professional to assess your needs and ensure that your loved ones will have sufficient financial protection if something happens to you.
Explore 20 year term life insurance quotes & rates from Fidelity Life
A 20 year term life policy can give you significant peace of mind during your prime earning years. Fidelity Life offers several affordable 20 year term life insurance policies.
- RAPID ecision® Life 20 year term may work for individuals between the ages of 18 and 65 looking for coverage amounts between $50,000 and $1 million.
- RAPID ecision® Senior Life has a 20 year term policy good for those who individuals between 50 to 75 years of age looking for between $10,000 and $150,000 in coverage.
