Fact CheckedIf you’re looking for average 20-year term life insurance rates, congratulations, my friend! You’re one of those people who plan.
Since I bought my first life insurance policy, I now sleep soundly, knowing my family is protected.
Will I live ’til the end of my term? I sure hope so. Life insurance is coverage to keep your family from falling through the cracks if the worst-case scenario comes to fruition.
I hope my family never has to make a claim. But if they do, they can move on with life without worrying about losing the house, changing schools, or missing a summer vacation.
…but one of the most important decisions you make is the length of time you need coverage for or the term. Is 20 years long enough? Let’s find out.
Average 20 Year Term Life Insurance Rates: Why Should You Select a Shorter Term?
If you Google “average 20-year term life insurance rates,” you’re probably looking for customized coverage for your personal needs.
As you probably know, the standard terms available for life insurance are:
- 10 Year Term
- 20 Year Term
- 30 Year Term
- 35 & 40 Year Terms (Not standard, but a few carriers offer these)
Each of these terms has its strong points.
Ten-year terms cover very short, specific periods. This approach is often used for loans and debts you expect to pay off quickly. Ten-year terms are also cheap.
On the other end, a 30-year term is a longer commitment. This is often chosen by those looking to cover their families while they raise children and put them through secondary education.
Of course, a 30-year term is a much more significant financial commitment, especially if you sign up later in life. Oh, how I know this 😉
20-Year Term Is a Great Product!
This brings us to the current topic—the 20-year term provides an excellent middle ground. It’s cheaper than its kissing cousin, term 30, and more expensive than term 10, but it offers a lot of bang for your buck!
So, let’s find out what the average 20-year term life insurance rates are for different situations.
I want to clarify that the cost of your life insurance is seriously impacted by your age, health, life choices, and the company you select.
I’m adding this caveat before providing rates: This only gives you an idea of what rates you could get. It would be best if you always worked with an independent agent to get the best premiums possible.
Let’s take a peek to see how it all works right now:
Average 20 Year Term Life Insurance Rates: 20 Somethings!
Maybe you’re wondering why someone in their 20s would consider buying life insurance.
Well, I’m here to tell you there are times when it fits like a glove. Let’s look at a 25-year-old non-smoking man – he’s in good shape and qualifies for a standard rating from Ivari.
He decides to go to medical school in the UK, which costs him a pretty penny. His parents aren’t wealthy, but they believe in him and cosign his loan with the promise that he will repay them when he gets a job.
Our client has about $200k of debt and wants to take out some life insurance to cover this obligation so his parents aren’t left holding the bag.
$250K of coverage for a 20-year term works perfectly in this situation. So, let’s check out his rates:
Sweet! He protects his parents for the cost of 4 Starbucks coffees per month!
“Note: Remember these rates are governed by your health. You have to qualify for the rating to get these premiums. Because our client is young and healthy it’s not a leap to imagine a preferred plus rating, so what would happen if he did qualify?
Let’s say he gets an elite non-smoker rating with Ivari….”
…now what??
The rates are almost the same! So this is the exception to the rule: When you’re younger, the difference between a standard and preferred rate is practically negligible.
Does he receive almost the same premium if he gets a standard rate, even if he is in top shape?
Why?
Either way, he is expected to live until the end of his term!
Average 20 Year Term Life Insurance Rates for 30 Somethings!
Ok, now we have a 35-year-old female non-smoking client.
She’s healthy, with a family history of cancer. Because of that and a brush with high blood pressure, she gets standard rates with Ivari. Our client already has sufficient life insurance coverage for her family…
But she just started a business and took out a loan, so she wants to protect her partners. She wants $500K of coverage for 20 years because she believes the company will be very profitable in year three. This means she intends to pay everything off in about 20 years—probably sooner.
As you can see, her premiums are very affordable, and she protects her partners and employees from a worst-case scenario!
What a gift.
“Note: If you’re a smoker your life insurance situation will change radically. Life insurance companies want to make cash and if you die during your term they have to pay out. That’s why they shun smoking. So let’s take a look to see what sort of impact smoking has on our client!”
OUCH! Our smoking client pays more than double. This number should be enough to make you want to kick your tobacco habit to the curb.
Her insurance is still pretty affordable because she only asks for a 20-year term, and chances are she’ll survive.
If you extend that to a 30-year term, she gets hit and pays a staggering $114.30 monthly.
Average 20 Year Term Life Insurance Rates: 40 Somethings!
We’re moving through the decades.
Now, we have a male client, a 45-year-old non-smoker in good shape who qualifies for a standard rate with Empire Life.
He and his wife are smart about their planning and bought what they thought would be enough coverage.
My client’s business took off, and he’s now in a far better financial situation than he ever thought possible.
Affordable Life Insurance For Over 40
Last year, he and his wife upgraded their home and now have a much bigger mortgage than anticipated.
They want to replace his current coverage with $1.5 million of 20-year term insurance, which provides additional funds to replace his income should something happen to him.
After going through their finances and goals, they think a 20-year term is a reasonable length of coverage, as the kids will be out of school and on their own by then.
The bulk of their mortgage will also be paid off. Let’s check out his rate right now:
As you imagine, the cost of premiums goes up quite a bit, but $1.5 Million of coverage for $238 per month is pretty damn good.
Now, you can begin to see the impact age has on the cost of life insurance. My client is happy, though. His family is protected, and they can maintain the lifestyle they’ve become accustomed to should he pass away.
“Moral of the story: Remember everything hinges on obtaining the quoted rates. This means you really need to evaluate the underwriting processes of the company you select. Empire Insurance may NOT be the company for him. You want to go with the insurer that gives you the best possible rating at the best possible price.”
Average 20 Year Term Life Insurance Rates: 50 Somethings!
Life insurance needs don’t necessarily stop as you age—especially now! Because of medical innovation, people are living longer and feeling younger and healthier later in life.
This change has a knock-on effect on everything we do. Some of the differences include:
- Having children later in life
- Divorcing & Remarrying
- Switching Careers
All of these situations bring new financial obligations in your later years. For this article, I’m using a 56-year-old woman in average health. She remarried in her 40s and now has a second family.
Prior policies cover her children and first husband, but she is concerned about her younger offspring.
She’s seeking $500K of coverage for a 20-year term to ensure they get through childhood and secondary education without issue. Let’s see what Ivari has to offer her:
While these rates are reasonable, our client can do better. This is an excellent example of how one size does not fit all.
Some insurers are more affordable as you age. So let’s see what Equitable Life of Canada has to offer:
Maybe this difference doesn’t seem like a huge deal to you, and at first glance, these figures are pretty close.
But if you factor this number over 20 years, you see what a difference there is. I don’t know about you, but I want to spend as LITTLE as possible on my insurance premiums while still getting fantastic coverage.
So this is what you save over your term if you select Equitable Life:
$3,993.60
“Moral of the story: Be sure to contact an independent life insurance agent, such as those at Policy Architects.
You can save thousands over the course of your term if you select the right insurer for you.
Also, remember 55 is the cutoff birthday for 30 year term. This is the point when you should start considering permanent life insurance products if you want coverage until you die.”
Average 20 Year Term Life Insurance Rates: 60 Somethings!
Okay, you’re heading into your senior years, but there may be some very big reasons for you to take out a 20-year term policy at this point.
For this section, I’m using a 62-year-old woman. She’s a nonsmoker in good health and wants $250K in coverage to satisfy the requirements of her separation agreement.
This cash is used to protect her ex-husband in case she meets an untimely demise. They adopted a child later in life, and her maintenance is still an issue.
Affordable Life Insurance for Over 60?
Let’s see what Ivari has to offer our client now…
Ruh-roh! Ivari doesn’t offer a 20-year term at this stage. So, if you are a senior or approaching that age, Ivari isn’t the carrier for you!
So, let’s look at a carrier that does work – Equitable Life Insurance!
NICE! Those are pretty sweet rates, considering the age of the applicant!
So if anything happens to her before age 82, her youngest children benefit.
She should also examine the legalities of the life insurance policy to ensure that she is designated a trustee while her child is a minor (under 18).
Check out my post about Term Life Insurance for Senior Citizens here.
“Moral of the story: If you are a senior you need to be aware of what products are available for you. At this point in your life birthdays are IMPORTANT. You also should consider using other products depending on what your needs are!”
Average 20 Year Term Life Insurance Rates: 70 Somethings!
Did you know a 20-year term is still available at age 70?! Incredibly, yes, it is. Two companies offer this product: Industrial Alliance (IA) and Assumption Life.
IA’s coverage is traditional term 20 while Assumption’s is Simplified Issue, non-medical.
Term Life Insurance For Senior Citizens
The problem is this coverage is costly.
To give you an idea of how costly it can be, a healthy 70-year-old non-smoking woman pays about $393.00 per month for $250K of coverage. The no medical is even more expensive at $728.00 per month.
OUCH.
At this point (or even younger), a whole-life policy with a guaranteed payout may better serve you.
Your needs may also be less substantial, so a small life insurance burial policy may be the best option. Why not call Policy Architects to find out what your choices are?
Policy Architects for All Your Life Insurance Needs!
If you are looking for average 20-Year Term Life Insurance Rates, you are doing your homework.
KUDOS. I love working with people who do their research!
The more you know about the life insurance process before you call an agent, the more you save. This is a significant investment. You want to make sure you achieve the following:
- Long enough term to protect you and your loved ones
- Adequate financial coverage so you’re never underinsured
- The right company for your needs
- A product that achieves your goals
That’s where we come in at Policy Architects. We have access to the best life insurance companies in Canada. There are so many products on the market with slight variations that have major impact.
Why not work with someone who knows all the ins and outs?
The best part? Consulting us doesn’t cost you a dime. The life insurance company pays my fees once they implement your policy. Call us today. We’d love to help.
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