*Should You Get 30-Year Term Life Insurance is a sponsored post
We’re taking a look at the pros and cons of 30-year term life insurance plans to help you decide on the best term life insurance rate for you.
Are you searching for a life insurance plan? If you are, you’ve probably already encountered the many different options you can choose from when trying to secure the right term life insurance rate for you. One of the longest-lasting—and most popular—types of term life insurance to choose from is a 30-year term. A 30-year term is ideal for many as it provides coverage for at least the amount of time it takes to raise kids or pay off a mortgage, for example.
That’s why today we’re taking a closer look at how 30-year term life insurance plans work, weighing the pros and cons, and assessing who is an ideal candidate for a 30-year term life insurance! So before you get a term life insurance quote, be sure to read through each section of this article! Let’s get started!
What is Term Life Insurance?
Before we can determine the best term life insurance rate for you, we need to define term life insurance
Finding the right insurance plan takes research.
Life insurance is broken down into two vast categories—term life insurance and whole life insurance. Term life insurance refers to plans that cover you for a designated amount of time. These plans can come in any duration but are usually limited to 10, 15, 20, 25, or 30-year plans. When you choose one of these plans, your family members are covered in the case of your untimely death in that period of time.
There is also the other type of life insurance which is called whole or permanent life insurance. Unlike term life insurance, these plans never expire and will cover you for the rest of your life.
Other than the obvious differences in duration, there are a few other differences between term life and whole life insurance. For example, a whole life insurance plan also accrues a cash value over time. This cash value is available to you during your lifetime and can be used to pay medical bills or other large expenses—including your monthly premiums.
With term life insurance, there is no cash value for your policy, which means that your policy only pays out after your passing. For many people, term life insurance is enough to provide peace of mind for themselves and their loved ones. Though the cash payout sounds like a great perk, more people will choose a lower monthly term life insurance rate over the promise of a future cash payout. But, before we get ahead of ourselves, let’s take a closer look at how exactly term life insurance works!
How Does Term Life Insurance Work?
Find out how you can get the best term life insurance rate for yourself and your loved ones
Term life insurance protects your loved ones for a finite amount of time.
When you are on the market for a term life insurance plan, one of the first things you need to do is decide on the length of the term. Though we are talking specifically about the 30-year term in this article, we should take a moment to discuss how different terms will affect your monthly premium. With that said, let’s discover how term life insurance works in a broad sense. Ultimately your decision will depend on a variety of important factors, like your family’s needs, your finances, and your health. The length you choose will also affect your monthly term life insurance rate, which is a big deciding factor for many.
Once you’ve determined how long you want your life insurance plan to last, the next step is to fill out an application. When you begin to fill out your application, you’ll encounter a lot of different health-related questions. For most insurance plans, you will have to undergo a physical and have you forward all relevant health information so they can get a holistic picture of your health. You might be wondering—“Why does the insurance company need so much information about me to give me a term life insurance rate?” The answer is that your health status, occupation, lifestyle, and habits affect your life expectancy, meaning they will affect your monthly premium. Unfortunately, if you have many health problems you will end up paying a higher premium or may be rejected outright by certain life insurance providers. While there are providers that will offer insurance plans to individuals without a medical exam, these providers will charge far higher premiums than providers that require an exam.
Once your application is approved by the insurance company, all you have to do is agree to the monthly premium and sign the documents to secure your term life insurance rate. After that, you’re insured!
It is important to mention that if you neglect to pay your monthly payments, your provider may suspend coverage. So, it is extra important to pay your premium on time to make sure that you pay your policy on time to maintain coverage for your loved ones.
What Do I Do When My Term Life Insurance Plan Expires?
Find out what your coverage options are after your term life insurance policy expires
Many people don’t know what happens after their term life insurance policy expires.
When weighing whole life insurance against term life insurance, many people wonder what happens after their policy expires. After your term life insurance policy expires, you have a few options:
- Renew Your Term Life Insurance Policy
- Convert Your Term Life Insurance into Whole Life Insurance
- Take No Action
Deciding which path to take will depend on your finances and your family. First, if you choose to renew or convert your life insurance policy, you won’t have to undergo a medical exam. However, your age will be taken into consideration when calculating a whole or term life insurance rate. That means the older you are when you choose to renew or convert your policy, the more you will pay for your monthly premium.
Since renewing or converting your insurance policy will inevitably raise the cost of your monthly premium, it is recommended that you choose a period where you feel like you won’t have to take any further action. We recommend securing the lowest rate possible while you’re young and choosing a term that you feel will cover your loved ones for as long as possible.
What is a 30-Year Term Life Insurance Policy and Is it the Right Choice for You?
Keep reading to find out how you can secure a low 30-year term life insurance rate
The earlier you secure a 30-year term life insurance plan, the lower your monthly premium.
We’ve already discussed how term life insurance provides coverage only for a certain amount of time. Since it is often difficult to determine which term is right for you, we’re going to be exploring the benefits and drawbacks of a 30-year term life insurance policy.
A 30-year term life insurance policy is exactly that, a life insurance policy that lasts for 30 years. As you explore different types of policies, you’ll find that 30 years is often the longest that insurance companies will offer. In some cases, you may be able to find 40-year term life insurance policies, but these are rare. So, that leaves 30-year policies as the longest, commonly found policy type. But, what does that mean for you?
30-year life insurance policies will cover you for 30 years from when you sign your policy and will provide a payout to your beneficiaries in the event of your passing. A 30-year policy is often the closest someone can get to whole life insurance without paying the high monthly premiums associated with whole life insurance. If you secure a 30-year life insurance policy when you’re healthy and in your 30s or 40s, this plan may provide you coverage for the rest of your life.
When your 30-year term life insurance policy expires, there is the option to renew or convert your insurance. However, when you convert or renew your life insurance plan, you’ll be 30 years older, meaning that your monthly premium will increase significantly.
What are the Pros of a 30-year Term Life Insurance Policy?
If you’re considering locking in a low 30-year term life insurance rate, the best time to do it is while you’re young & healthy
A 30-year term life insurance policy is ideal for family planning.
The greatest advantage of choosing a 30-year term life insurance policy is the length of coverage. 30 years is a long time! When you choose a 30-year plan, you won’t have to worry about burdening your loved ones with your debt or end-of-life expenses in the event of your death. If you have outstanding mortgage payments, college debt, or any other outstanding debts, you must secure life insurance—otherwise, your loved ones will be stuck with the bill after your passing. Luckily, when you secure a 30-year term life insurance rate, you won’t have to fret about the possibility of your loved ones taking on your outstanding debts.
Another great “pro” for a 30-year term life insurance plan is that it is a far cheaper alternative to a whole life insurance plan. Whole life insurance costs, on average, much more per month than any term life insurance plan. Since your coverage doesn’t expire with a whole life insurance policy, the insurance company requires you to pay more to justify a guaranteed payout.
However, it should be mentioned that while a 30-year policy will be less expensive than a whole life policy, it will be more expensive than the shorter alternatives. But, if you remember what we discussed before—a 20-year policy may be a lower cost, but you’re more likely to outlive the policy and need to renew or convert at a higher price later on. So, just because a 30-year term life insurance rate is initially more than a 10 or 20-year policy, it does not mean you will be saving money with a shorter plan. In most cases, choosing a shorter plan—especially when you’re young and healthy—will end up costing you more in the long run.
Are You a Good Candidate for a 30-Year Term Policy?
30-year policies are a great option for many individuals, but a term life insurance rate is not for everyone
Outstanding college debt? You should consider a term life insurance policy.
A 30-year term life insurance policy is a great opportunity for young and healthy individuals to cover their loved ones in the event of their passing. However, there are some circumstances where a 30-year policy is not always the best option. That’s why we’ve come up with a few life scenarios where a 30-year plan is ideal. Let’s take a look!
- You Are Starting a Family
Starting a family is a major life decision! When you begin family planning, you should also begin searching for the right life insurance policy for your family so that all members of your family are covered for the foreseeable future. Life insurance is most important when you are in the beginning stages of raising children because of the costs and labor associated with starting a family. For example, in the event of your passing, your partner will need to provide for the family and continue to raise your children. Without an insurance policy payout, raising children becomes nearly impossible without outside help.
If you are starting a family, you need to factor several different costs into your policy before deciding on your total coverage amount. For example, you will need to cover your current income for a set amount of time—usually 10 years. You’ll also need to think about childcare costs, higher education, and other expenses associated with raising children until the age of 18. The considerations you make for your children during family planning can affect the rest of their lives, so it is important to choose the best policy to provide ample coverage.
- You Have Outstanding Debts
Another reason to secure a 30-year term life insurance policy is if you currently have outstanding debts. As we briefly discussed in a previous section, if you have outstanding debts like a mortgage or college loans, you must secure a term life insurance rate while you’re young. Should you pass away before your debts are fully paid—and you haven’t purchased a life insurance plan—your family members will be required to pay your outstanding debts. Not only that, but your family members will also have to cover the full cost of all end-of-life expenses including things like funeral costs. These costs can be overwhelming without life insurance. That’s why it is a great idea to purchase a 30-year term life insurance policy for long-term peace of mind.
- You Want a Plan in Place for After You’re Gone
It isn’t a fun subject to think about—especially when you’re young—but it is important to plan for after your death. This is especially true if you meet either of the two criteria listed above. Purchasing a 30-year term life insurance plan is important to secure the future of your family members, children, and spouse. While you may not have a spouse or children at the moment, you should still establish a plan. By securing a low 30-year life insurance rate while you’re young, you can cover the costs of college for your future children, cover your debts, and plan to leave behind an inheritance for your family. Though this is all quite heavy for most people in their 20s, 30s, and even 40s, you must have plans for whatever the future might bring.
How Much Will My 30-Year Term Life Insurance Policy Cost?
Often monthly term life insurance rates are more affordable than you think
If you’re stumped trying to find the best policy, you can always contact a financial advisor for help.
Your term life insurance rate will differ due to several factors—that’s why we’re breaking down all of the different considerations the insurance company will make when determining your monthly premium.
An insurance company will review your physical exam, the questions you answered as a part of your application, your age, and the level of coverage you desire. After taking these factors into account, the insurance company will either accept or reject your application. If your application is accepted, the insurance company will then offer you a monthly term life insurance rate.
For a 30-year, $500,000 term life policy, men in their 30s can expect to pay anywhere from $40 to $50 per month for a policy. This is, of course, if you are deemed healthy and are a non-smoker. Smokers will end up paying a higher monthly premium because of the inherent health risks that come with smoking.
For a 30-year $500,000 term life policy, women in their 30s will pay anywhere from $30 to $45 as a monthly premium. Since women tend to live longer than men, they also pay less per month.
Now that we’ve explored the pros, cons, and costs associated with purchasing a 30-year term life insurance policy, it’s up to you to decide if a 30-year policy is right for you. If you need additional assistance making a decision, you can always contact a financial advisor for extra help. Remember, there is never a bad time to consider your family’s financial future!
*This is a sponsored post. I sincerely hope that this life insurance post has been a benefit to you.