You can get a 20 year term life insurance policy at an incredibly low monthly premium that’s equivalent to what you pay for your daily lunch.
The reason you probably want to get a term life insurance policy is to be able to take of your family and provide them with income replacement should you have an unexpected fatal accident.
How cheap is a 20 Year Term Life Insurance Policy?
Here’s an example of what you might expect to pay for a monthly premium for a $100,000 term life insurance policy. These quotes are for a person who is a non-smoker and in good health.
$100,000 Term Life Insurance
Quotes for Ages 36 – 40
Age 20 Year Term
36 Year Old Man $9.87
37 Year Old Man $10.23
38 Year Old Man $10.60
39 Year Old Man $11.00
40 Year Old Man $11.42
(Disclaimer – These rates are effective as of February 1, 2013)
Why Term Life Insurance?
There are two basic types of life insurance policies which include term life and permanent life insurance. Term life insurance is without a doubt the most affordable of the two types of life insurance policies that your can buy.
Although term insurance covers you for life, it is bought in chunks of time such as a 20 year term policy. The premiums are generally the same through the life of the policy. Term life insurance pays out death benefits only and the proceeds go directly to beneficiary whom you name on the policy.
The life insurance proceeds are paid as a lump sum and are not taxable. One piece of advice about naming a beneficiary – never name your estate as the beneficiary because then the proceeds could become taxable.
Why Should I Buy Term Insurance?
Term life insurance is the most suitable form of policy if your primary aim for getting life insurance is to look after income replacement. You can also use it cover your funeral and death expenses, plus take care of any loans or debts such as your mortgage, car loan and credit cards for example.
Term life insurance is also a better buy than mortgage insurance which is sold by many mortgage lenders to cover your mortgage. Another reason why a term life insurance policy is better is because mortgage insurance is a form of a decreasing term policy, and the proceeds get paid directly to the lender and not your loved ones.
Also, if you are self-employed or are in partnership with one or more partners than you should carry some life insurance to cover your business expense obligations should you die.
How Much Term Life Insurance Should I Buy?
That’s up to you to decide, but most experts suggest that minimal amount of term life insurance you should carry, especially for the purpose of income replacement, should be 10 times your net annual salary. Of course, it also depends on what your budget will allow and whether you have any specific financial needs you want to cover.
Why a 20 Year Term Policy?
A 20 year term policy might just the right period to buy for anyone who is 36 – 40 years old. It’s very likely you plan to retire somewhere between age 55 – 60 and want a policy to cover you until then.
It’s also very likely that you have young children by now who may or may not be approaching or are already in their teens, and want to ensure you have sufficient life insurance until they are old enough to go out in the world on their own.
Will Term Life Insurance Cost More if I’m a Smoker?
The answer is yes. But, not to worry, it won’t cost all that much more. And, if you quit down the road and are free from smoking for a year or more (it varies from company to company), then many insurance companies will allow you to re-evaluate how you are rated and you could end up with a cheaper monthly premium.
Where do I Find a Cheap 20 Year Term Life Insurance if I’m Between 36 – 40 Years of Age?
You always want to talk to an independent agent like myself. We can access and research dozens of companies so you are assured we will find the best policy at the most affordable rates. If you have health concerns, don’t let that dissuade you because we can give you valuable advice and help you to find a policy that suits you.
Whatever your needs or questions then please call me direct at 877 – 966 – 9383.