Why 20 Year Term is the Most Commonly Purchased Type of Life Insurance

20 Year Term Life InsuranceI sell more 20 year term in my office than any other policy, hands down!  (In some months, up to 50% more frequently than other terms.)

What exactly makes this particular policy ideal for so many people?

I believe it is the perfect blend of pricing and fits the duration of most people’s needs perfectly.

We’ll get into that a bit more in a minute, but for now let’s take a bird’s eye view of this thing to see if we can better understand it.

How does 20 Year Term Work?

Any time I write on a specific type of life insurance policy, such as 20 year term life insurance, I think it’s helpful to take a step back and explain a bit about the types of insurance, so no matter where you are in your life insurance search, you can follow along easily.

There are two basic types of life insurance, term and permanent.  Term most often is purchased for life insurance protection for a specific duration, such as 10, 20, or 30 years.

At the end of this duration (or term), most term policies have options to pay a higher premium and continue on with the policy for additional years, but this is not very common.  Most people only keep their term policies for the initial term period.

Permanent policies, including whole life and universal life, provide coverage your entire life and may build cash value.

20 Year Term Life Insurance Quotes

Below I’ve included sample 20 year term quotes for males between the ages of 35 to 65.  The rates are for a “preferred plus non tobacco” risk class, meaning a man in excellent health.  For other ages or amounts, please use our form on the right.

Age                            $500,000           $1,000,000
Male Age 35               $22.70                   $38.72
Male Age 45               $53.51                    $100.92
Male Age 55               $127.28                 $249.72
Male Age 65               $406.12                 $804.32     **All premiums Monthly

*Premiums based on 9/5/11 and are subject to change.  May not be available in all 50 states…..(continued on page 2)