20 year term vs. 25 year term
Life insurance companies usually offer three options for term life policies:
- 20 year level term
- 20 year level term with decreasing term
- 25 year level term
When purchasing a level term policy you’re basically choosing how long you want that term to be. Figuring out which option is best for you depends on how you plan on using the policy and how much money you’re willing to spend.
If you’re in your 20s or 30s and just starting out in life, a 20 year term is going to work perfectly for you. That’s because this term is going to give you enough time to fully invest your money, find a steady career, and put down roots.
Now if you’re in your 40s or 50s and you already have a family, a house, and a good amount of savings, you’ll probably want to consider a 25 year policy. This will give you enough time to ride out your retirement and any major financial setbacks or setbacks you might face in the future.
25 year term vs. 30 year term
If you’re wondering whether or not you need a 30-year term life insurance policy or a 25-year term life insurance policy, the answer may surprise you.
Although Shorter Term Life Insurance Policies Have Grown in Popularity Recently …
1/3 of term life insurance policies sold today are for shorter terms than 30 years.
One of the reasons why term life insurance is becoming more popular is because many people would rather own their policies and the money in their policies rather than keep it locked in that long term life insurance policy.
Some will argue that they can get more coverage by extending the life insurance policy for the full 30 years. But with the current high interest rates, many people would rather use the money in the policy to meet short term needs than let it grow longer to cover their retirement expenses many years from now.
However, if you’re reading this post, you’re probably wondering which should you opt for. So, let’s take a look at the differences between a 25 year life insurance policy and a 30-year life insurance policy.
Insurance is a source of financial security in case of unfortunate circumstance … whether it’s disability or death.
When looking for life insurance, the conversation is often focused on how much coverage you need. Most people forget to look at how long they’ll need to keep paying for their insurance. As a result, they believe the higher the amount the lower their premium.
The standard terms for a life insurance policy are 10, 15 or 20 year policies. Flexibility is limited while you’re still alive. If you die, there’s an opportunity to extend your coverage. But your options increase with the policy term length, and the premiums tend to fall with longer policies.
Use the 20 year term life insurance policy as your starting point for your coverage needs. A 20 year term would cover you until you are 82 years old.
Also, if you know you have special circumstances such as special needs for a spouse or a high interest loan, it’s important to include this in your policy.
25 Term Term Life Quotes
A ?25 year term life insurance policy is a regular life policy policy that provides death benefits over a span of 25 years. Sometimes known as temporary life insurance, a ?25 year term life policy is a renewable life insurance policy. It provides benefits for the same beneficiary over specified time period at the same rate of premium.
If a policyholder doesn’t renew the insurance coverage under the policy, the coverage will expire. The interest rate and cost of the insurance however, will remain the same.
The table below shows a typical 25 year term life insurance policy. In addition to the premium, this table also reflects the cost of the insurance. As you can see, there is a rather large premium involved with this type of life insurance policy. This is because this type of insurance policy is available for a limited time and, is correspondingly more expensive than other forms of life insurance.