So What Is A 20 Year Term Life Insurance Policy? And Who Should Buy It?
20 year term life insurance is life insurance coverage for a time period of twenty years. Most policies offer coverage after 20 years but at a higher rate for another 20 years. There is no premium increases during each time period.
At a certain age the policy will expire without value – so everything you have paid in is gone. But the coverage was affordable and you had peace of mind through financial protection during that time period. Most 20 year term policies will expire between ages 70-80. It doesn’t matter how long you owned the policy.
You might reach a point in your life where you realize you will need coverage for life. For this reason it is best to look for a plan that is convertible to a permanent life insurance plan such as Whole Life Insurance and Universal Life Insurance up to age 65 or 70. If you decide that you need coverage beyond 20 years you have options for lifetime coverage – without any medicals required.
The option to covert to permanent life insurance with no medicals is quite often a valuable option. If you are younger please consider that most Canadians will develop some health issues as they reach their fifties and sixties.
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Who should buy 20 Year Term Life Insurance?
Many Canadian Life Insurance advisors recommend 20 year term insurance when there is going to be a mortgage for 20 years. Another common time to buy 20 year life insurance is when you are starting a family, and know that you will have dependants for many years to come. It is important to have funds to replace income, pay off debts and pay any expenses that might be required to raise children.
If you have debt (like a mortgage) are newly married, starting a family - twenty year term life insurance could be best for your life insurance needs.
20 years is a long time and 20 year insurance coverage that is guaranteed in price gives great peace of mind. And the rate is more affordable than Whole Life Insurance.
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Always speak with a licensed insurance representative about your specific situation.
This site is general in nature and there may be errors or ommissions