A term life insurance policy is a type of life insurance coverage that lets you pay a flat rate for a fixed period of time. If you pass away during this set period, the life insurance company will pay out a death benefit to the policy’s beneficiaries.
When deciding how long you need term life insurance, it’s important to choose a life insurance term that will provide the most security for you and your loved ones. This is why a 20-year term is often the most popular term for life insurance.
What is a 20-year term life insurance policy?
For a monthly rate, a 20-year term life insurance policy guarantees a death benefit for the 20 years the policy is in effect. Like all term life insurance coverage, a 20-year term policy offers the following benefits:
- A low monthly premium that will not increase for the duration of the term
- A high payout to beneficiaries that will financially protect your dependents
- Easy-to-understand benefits and fee structures
- The option to add riders and additional benefits to add more coverage
For these reasons, people from all walks of life choose to buy term life insurance. Whether you’re just starting out in your career, just starting a family, or approaching your retirement age, it’s worth considering an investment in 20-year term insurance.
LEARN MORE ABOUT TERM LIFE INSURANCE
How much are 20-year term life insurance rates?
Life insurance companies have many options to fit each person’s unique needs, but term coverage is usually one of the most affordable types of coverage offered. The exact cost of buying term life insurance will vary depending on several factors, including:
- How much coverage you want
- Your health, as determined by a medical exam
- Your age
- Your gender
Younger, healthier applicants usually pay the lowest rates, but even more mature customers can find affordable coverage with a 20-year term policy.
Fidelity Life 20-Year Term Life Insurance Rates
Life insurance companies offer different rates, so it pays to compare life insurance quotes. However, it always helps to have an example of what to expect.
Here’s what a person in excellent health could pay for Fidelity Life’s RAPIDecision® 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
Visit us to receive your personal 20-year term life insurance quote online for free today!
Why choose a 20-year term life insurance policy?
A 20-year term life insurance policy is flexible and affordable while providing security at a time when loved ones need it. Young people in good health often choose a term life policy over a permanent policy since its coverage amount will make sure their loved ones are protected without forcing them to pay for higher whole life policy premiums.
A 20-year term life insurance policy can also be right for more mature adults, especially those with high earning potential. A term life plan can help these people know that their college-age children will not have to give up their education if they pass away, that their partner will be provided for in the event of their death, and that all financial obligations will be met if an unexpected tragedy strikes.
Provide for your family
If you have children or a spouse who relies on you to take care of them, you want to make sure they’ll be taken care of if anything happens to you. No amount of money will be able to replace the value of you being a part of their lives. However, a 20-year policy can help pay for housing, transportation, college tuition, and other expenses, providing them with security even in the wake of tragedy.
- Example: Marcus and his wife are just getting settled in life. With two kids, a new house, and a car loan, there’s plenty that his family has to pay for. Although his wife also works, the family would not be able to pay their expenses without his income. So, Marcus purchases a 20-year term life policy, which offers a lower premium than whole life insurance. Now, he knows that even if he dies during his peak earning years, his family will be provided for.
Settle debts
While many debts and personal loans disappear when you die, there are still debts that your loved ones can be left responsible for when you pass away. If your parents cosigned your student loans, or you took out a mortgage with your spouse, they will find themselves having to pay these debts without you. You can make sure they’re not left paying for these debts on their own with a 20-year term life insurance policy.
- Example: Jennifer needed $100,000 to attend a prestigious law school. To be approved for a student loan, she needed her parents to cosign on the loan. If the unthinkable happens, that means her parents would have to pay the loan off themselves. To protect them from that possibility, Jennifer buys a 20-year term life policy that can be used to settle the debt.
Supplement an existing life insurance policy
Life has a habit of changing unexpectedly, meaning your life insurance needs might change as well. In these situations, an insurance agent can help you find the coverage to fit your needs.
- Example: Paul wants to name his new wife, Andrea, as the beneficiary of his universal life insurance policy, which has built up a sizeable cash value component. However, in his divorce decree, he agreed to list his ex-spouse as the beneficiary of his life insurance until their children turn 21. So, to fulfill this requirement while making sure Andrea is cared for if he dies, Paul supplements his universal life insurance with a 20-year term life insurance policy.
Get more coverage with riders
Life insurance helps provide for the financial security of your loved ones. However, an insurance company can offer more than just a flat death benefit for those left behind. By talking to your insurance agent about life insurance riders, you can find ways to expand your coverage to fit your needs.
Inflation rider
With prices constantly increasing, what seems like a sizeable death benefit amount might not have enough purchasing power to fit your family’s needs when you pass. An inflation rider can help mitigate this problem by giving your life insurance policy a 5% annual boost starting your policy’s second year, with a maximum increase of 25%.
Accidental death benefit rider
There’s always the chance that tragedy may strike suddenly and unexpectedly. This is especially true if you work in a high-risk job. An accidental death benefit rider will help provide for your loved ones if the unthinkable happens.
If you die in a covered accident, or 90 days after a covered accident occurs, an accidental death benefit rider will provide your family with a lump sum payment on top of any additional death benefit amount they are entitled to.
Accelerated death benefit rider
Healthcare can be expensive, and a terminal illness may prevent you from earning the income your family relies on. If you find yourself in this situation, you might find yourself in need of money to cover expenses.
An accelerated death benefit rider lets you withdraw a portion of your death benefit early if you have a qualifying critical illness. This money can be spent on whatever you see fit.
Child life insurance rider
The loss of a child is devastating to any parent. No mother or father should have to worry about their financial situation when suffering from such a tragic loss.
If your child passes away, a child life insurance rider can help pay for funeral expenses and make sure you can focus on what’s important in this time of need by allowing you to take time off work to grieve without worrying about the loss of income.
What happens when your 20-year term expires?
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 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 advisor to assess your needs and ensure that your loved ones will have sufficient financial protection if something happens to you.
LEARN WHAT HAPPENS AFTER TERM LIFE INSURANCE EXPIRES
Find out what insurance you need
Everybody’s insurance needs are unique. How much term coverage you need, depends on many different factors, including
- Age
- Health
- Income
- Expenses
- Outstanding loans
- Retirement funds
- Number of children
- Age of children
In the same vein, your insurance needs will change over time. A plan that serves your needs as a single young professional who has a group life insurance policy through work will differ from your needs as a married man or woman with children. Even if you choose term life insurance at a younger age, you might want to look into permanent life policies, such as whole life and universal life policies, to remain insured when you approach retirement. Keep in mind, however: those plans often require a new medical exam as part of the underwriting process.
To find out which life insurance plans work best for you, consider speaking with a financial advisor or licensed insurance agent. A financial adviser can take a broad look at your circumstances, including your current personal finance situation, your future goals, and your financial obligations.
Explore 20-year term life insurance quotes & rates from Fidelity Life
Nobody can put a price on human life. However, when people depend on you — whether for personal finance needs or nonmonetary support — an unexpected death can put them in a bind. A 20-year term life insurance policy offers security to your loved ones if they ever lose you.
Fidelity Life offers several affordable 20-year term life insurance policies.
- RAPIDecision® Life offers coverage between $50,000 and $2 million. Those between the ages of 18 and 65 may qualify for a 20-year term.
- RAPIDecision® Senior Life is an option for those aged 50 to 70. This policy’s 20-year term provides between $10,000 and $150,000 in coverage.
Quotes for 20-year term life insurance
Life insurance can make a world of difference to a family that has lost a loved one. However, some people hesitate to explore the options available, not knowing what premium payments to expect.
Thankfully, it’s now easier than ever to determine term life insurance costs. By providing your age, gender, employment status, zip code, and overall health, you can instantly receive an estimate of what a term policy might cost you. From there, you can begin the process of receiving a free life insurance quote for the policy of your choice.
There are a range of affordable Fidelity Life products to choose from based on your situation and financial responsibilities.
Get started on a quick and easy quote for a 20-year plan to discover which options best meet your needs.
Calculate what you need
Fidelity Life’s term life insurance calculator can help you determine what type of life insurance will work best for you. By entering information about your age, family, income, savings, expenses, and future plans, the calculator can help determine the coverage amount that is right for your unique situation. It also provides you the opportunity to get a quote for a plan that fits these needs.
Who needs life insurance?
Whether you’re single, married, young or mature, are healthy, or are living with pre-existing conditions — life insurance can be a major benefit for you and your loved ones.
LEARN MORE ABOUT WHO NEEDS LIFE INSURANCE
Still need help?
If you don’t want to get a quote online, you can call an insurance agent at (866) 244-5475. They will walk you through the process of determining what coverage will most benefit you and your family.
Options besides term life insurance
When most people buy life insurance coverage, they’re usually looking to make low premium payments over an extended time period. They also want a high death benefit in case they pass away unexpectedly. That way, the deceased’s beneficiaries can comfortably afford mortgage payments, college tuition, and day-to-day expenses.
While term life insurance fits these needs, there are additional life insurance policies that offer benefits that term coverage lacks.
The most common alternative forms of life insurance include permanent life insurance policies and final expense insurance.
Permanent Life Insurance
Unlike term life insurance, permanent policies offer lifelong coverage that will not expire, so long as you continue to pay premiums. For term coverage, the policy’s death benefit is meant to help provide your family financial security if you die early. Meanwhile, permanent life insurance is intended to last your entire life, even if you live to be 100 years old.
There’s a trade-off, however. The premium payments for permanent life insurance coverage are more expensive than the premiums paid for term life insurance.
There’s another benefit to permanent life insurance: a permanent life insurance policy also usually offers a cash value component that grows over time. The specific way the policy’s cash value will grow, along with the policy’s payment structure and death benefit, depends on the type of permanent coverage you choose.
- Whole Life Insurance policies have level premiums, and the policy’s cash value will grow at a set rate. A whole life insurance policy also has a fixed death benefit, meaning you and your family will know what to expect when the time comes.
- Universal Life Insurance policies are a more flexible form of permanent life insurance policy. With universal life policies, you can choose to pay more than the minimum premium to build cash value and increase the policy’s death benefit. The cash value also grows at a variable rate, based on the current market conditions.
Final Expense Insurance
If you’re mostly concerned with whether your loved ones will be able to pay your funeral costs, then you might want to look into final expense insurance.
By far the most affordable coverage that insurance companies offer, final expense insurance offers a lower death benefit that’s meant to cover end-of-life expenses so that your family doesn’t have to worry about them. For example, Fidelity Life’s RAPIDecision® Final Expense insurance offers between $5,000 and $40,000 in benefits.
Unlike other life insurance coverage, the insurance company usually doesn’t require you to take a life insurance medical exam to qualify for coverage.
Still have questions? Call one of our agents at (866) 912-7775 or go online for a fast, easy life insurance quote.
