10 Yr, 20 Yr, Or 30 Yr Term Life Insurance??
Posted August 2, 2009 – 4:19 pm in: term life insuranceI’m 20 years old, I have a wife buut no kids. I want to take out a term life insurance plan. (I probably will need it for about 30 years) My question is, should I take out a 30 year plan, so I will be paying the same rates in 30 years? Or should I take out a shorter one, paying less, than purchase another one in 10 or 20 years? I’ve heard speculation that rates will be lower when I’m 40 because life expectancy will be longer. What do you guys think? I’m in good health and don’t have a bad medical family history. Thanks!!
Tags: Insurance, Life, Term
9 Comments
I got news for you, the older you get the more likely your rate is to go up, because you are that much closer to the old guy with the sythe, and are more likely to die. I would take out the 30 year plan, that is what I have. You might want to consider checking out SBLI if that is in your area. They are pretty low premium insurance.
You never know what may happen.
It may be best for you to lock-in the long-term guaranteed rates for a 30 year term life insurance policy.
Then, each year, you can compare rates and see where you stand, based on your age and health, and what your family’s needs are at that time.
It’s good to be safe and secure the future for the maximum period of time, since you already know you need the coverage for 30 years.
Make sure to compare multiple quotes online before you buy. That way you may be able to save up to 50% or more.
30 year level term life insurance may be a good option for you considering your situation. Try to pay your premiums on an annual basis, as this may save you some money on your premiums.
Also, if you are considering $270,000 of coverage for example, try to compare quotes for $300,000 of coverage. You may find it’s not that much more expensive.
I hope that helps! Best of luck to you.
You should get WHOLE LIFE…You’re only 20 and in 30 yrs you’ll be 50 and if you say you’re in good health and don’t have a bad medical history, I doubt you’ll only need 30 years..Whole life covers you for your whole life and might be a bit more expensive but it’s worth it..If you do get a 30 yr term but live longer then you have to go through the paperwork again…
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help!
Go for the 30 year term. At your age it will be cheap. The upside if you did develop a health problem you would be covered where as if you had a 10 year term and then developed a serious illness you would not be able to get insurance or it would be considerably more expensive.
After 10 years or so you can get quotes to see if you want to start a new plan and drop the old one (just in case prices do go down). Life expectancies are being constantly re-figured by the insurance companies and you are correct sometimes the premiums go down because of this.
Oh and about whole life, you should find out what the charge is for whole life, if possible invest the difference between your term policy premium and the amount of the whole life policy premium. Put this money in a good mutual fund and in 30 years you will have a very nice nest egg.
The older you are the more expensive rates will be…that is a fact of life and will be forever and ever. The insurance company has what are called morbidity and mortality charts…the higher your age goes the more likely you are to die, ie your insurance will cost more.
Any good agent (or person for that matter) would tell you it is much better to get the longest term you can get now because in 10 or 20 years it will cost you more money.
I would take 10 year policy. You dont know from one day to the next what will happen in your life. God forbid anything to happen. I would play it by 10 year policies.
You’re smart to get term insurance right now while you are young. Term life gets more expensive as you get older because your probability of dying (and the insurance company paying) is higher.
Life expectancy tables aren’t updated all the often and they do not affect pricing retroactively, so even if life expectancy were to increase by a few years when you’re 40, that won’t offset the increase in your premiums.
With whole and universal life, the extra fees and charges you pay can be invested elsewhere.
The older you get, the more you’ll probably pay for insurance.
Term policies are good for if you have debts to pay off. Like if you have a 30 year mortgage and get a 30 year term policy, if anything happens to you your wife can pay off (hopefully) the mortgage. Does that make sense?