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Life insurance offers one of the best ways to make sure your loved ones can carry on with less financial burden should the worst happen. And a term life insurance policy can offer great coverage for a fraction of the cost of a whole life insurance policy.
Most insurance providers offer term life insurance for 10, 20, and 30 years. In this article, let’s take a look at 30-year term life insurance – explain what it is, how much it costs, and who needs a 30-year term life policy.
If you are considering getting life insurance, this post will provide you with everything you need to know about 30-year term life insurance.
In This Article:
How Does 30 Year Term Life Insurance Work?
A 30-year term life insurance policy is a life insurance policy that, as the name suggests, lasts for 30 years. This term is fixed, as are the premiums – meaning you will pay the same monthly premium for 30 years, at which point the policy expires.
Even if you get ill, or change your lifestyle or occupation, the rate for your life insurance will stay unchanged.
When signing a 30-year term life insurance policy, you will have to choose your policy value. This is the amount your beneficiaries would receive. The policy value is also called “death benefit.”
Most of the companies we partner with offer up to $1 million in life insurance coverage; however, some go as high as 2,3,5 and even $10 million!
30-Year Term Life Insurance Cost
There are many factors life insurance companies take into consideration when calculating the premiums for a 30 year term policy.
Here’s how 30 year term life insurance rates are determined:
The rate will depend on the policy value you choose. It is important to select enough coverage to make sure your loved ones will carry on without difficulties.
It might sound weird, but women pay less for life insurance than men. The reason for that is that women enjoy a longer life expectancy when compared to men and are statistically less risky.
One of the most important factors taken into consideration when calculating life insurance rates is age. The younger you are, the lower the premium you will pay, since the odds of you using the life insurance benefit are lower.
Occupation and hobbies:
If you work in a risky environment or like extreme sports, your premium will be higher than those working at the desk in an office and reading books on the sofa on weekends.
Insurance companies will most likely look at your blood pressure, cholesterol level, and any other preexisting medical conditions, such as diabetes and heart conditions. Some companies offer no medical exam life insurance policies.
Family medical history:
A life insurance provider might look into your immediate family’s history to see if there were cases of cancer or any other condition you might have inherited.
Using nicotine and alcohol products, being overweight, and lack of physical activity might negatively influence your life insurance rate. Maintaining a healthy lifestyle can save you loads of money on life insurance premiums.
Haven Life Haven Life provides a simple and fast application process with higher than average term life coverage for healthier individuals. 30-Year $250,000 policy for less than $17, $1,000,000 in coverage for less than $45 per month.
How Much Does an Average 30-Year Term Policy Cost?
Now that we have looked at all of the factors that determine rates, we can now look at the average costs of life insurance.
- A 30-year-old female (on average) can expect to pay between $21.52 for $250,000 in coverage and $54.46 for a $1,000,000 policy.
- Men can expect to pay a bit more at $26.53 for $250,000 in coverage up to $66.52 for a $1,000,000 policy.
If you work in a hazardous environment, smoke, or have a preexisting medical condition, your insurance premium might be higher.
Sample 30 Year Term Life Insurance Rates
Here are some sample rates by age for a 30 year term policy:
*Sample monthly premium rates sourced from Policygenius based on Preferred health ratings in 2019.
Is A 30 Year Term Life Insurance Policy Right For You?
A 30-year term life insurance policy is one of the best options for young individuals planning to start a family.
The younger you sign it, the cheaper it will cost you. When started early, 30 years will cover the most vulnerable period of your life: when you’re starting a family, taking on loans, and have young children.
This is when you need to take care of your financial stability the most and make sure that if something terrible happens, your family can continue without your income.
If you sign a 30-year life insurance policy when you are 28 or 30 years old, it will cover you till you’re 58-60. By that time, your kids will probably be out of college, and your family is more likely to have a stable financial foundation.
If you are older than 30, a lesser term might be a better choice for you; 10 and 20-year term life insurance policies usually come with lower premiums.
30-Year Term Life Insurance is Best if:
- You are newlywed:
Starting a family is probably one of the happiest moments in your life, but also a big responsibility. Getting a 30-year life insurance policy can leave your mind at peace, knowing that whatever happens, your loved ones are covered. 30 years is an excellent term for newlyweds since it will cover the family while the kids are growing up.
- You are the breadwinner:
If your family depends on your income to stay financially stable, it is important to make sure that they can make it through without you. In 30 years, your spouse will most likely be near retirement or already in it. Losing a family member is hard enough, protect them with a life insurance policy to prevent unbearable financial struggle.
- You have a child with special needs:
Children with special needs might need their parents’ help for longer periods than those without. Getting a life insurance policy for a term of 30 years can give your family enough time to figure out a financial plan for your child’s future without having to worry about it right now.
- You have long term debt:
If you have a joint loan for a longer period of time, such as a mortgage, then a 30-year life insurance policy will ensure that even if you are not around anymore, your family will not have to worry about the added weight of extra repayments.
Should I get a 20 or 30-year term life insurance policy?
While getting 30-year term life insurance might sound really great, it is not the optimal option for everyone.
Life insurance, like other types of insurance, is personal. There is no one size fits all policy.
Before deciding on the term, you need to consider your needs, budget, age, dependents, income, and family expenses.
A 20-year term life insurance policy may be a better option if:
- You are older than 30 years
- Have no family
- You are not the main breadwinner in your household
- You don’t have long term debts
20-year term insurance might also be a better choice for you if your spouse is retiring in 20 years or less, and your children will be out of college at that time. The chances are greater that they will be able to take care of themselves financially.
If it makes sense for you, choosing a 20-year coverage can save you on your monthly premiums.
If you are not sure which term is the best fit for you, it is always advisable to consult a professional life insurance agent.
What happens to term life insurance at the end of the term?
Some insurance companies will offer life insurance conversion once your policy ends.
The truth is that not all of them do, so it is important to check your policy before signing it. The conversions can also vary from company to company. Depending on the company, you might be able to convert your expired term life insurance into universal life insurance or renew the term life insurance at higher rates.
If a conversion is not included in your policy and your life insurance term is finished, you will not get your money back. You’ll have to either sign a new policy with newly calculated rates or stay without life insurance.
30 Year Term Life Insurance is Great for Millennials
A 30-year term life insurance is a great choice for millennials just starting out building their family and trying to build a strong financial foundation for future years. Getting longer term life insurance while you are young can save you money since the rate will be fixed for the whole duration of the policy.
If, after reading this article, you decided that a 30-year term life insurance is exactly what you need, it is time to start shopping for life insurance online. Get personalized quotes from as many of the best life insurance companies as you can, compare them, and pick one that suits your needs and budget the best.