TERM 20 LIFE INSURANCE QUOTES, RATES, AND EXPERT TIPS

Why Choose LSM Insurance For Term Life Insurance

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What is 20 year term life insurance?

Term 20 life insurance is a sub-category of Term life insurance. It covers a policyholder for a clearly defined term of 20 years (thus, it is called Term 20). Should a policy holder pass away within this time frame, his/her beneficiaries will receive the coverage amount. After 20 years, this policy comes to an end (coverage disappears). A picture below shows a sample premium structure.

If you want to extend a 20 year term life insurance policy, most likely, your insurance company will require you to get another quote. The new term life insurance policy will be typically more expensive because life insurance rates become higher as you get older (see an example below).

When do you need 20 year level term life insurance?

20 year level term life insurance, or Term 20 Life Insurance, provides a coverage for 10 years only and is optimal in particular situations. Here are a few examples:

  • You want to make sure your kids are well off (if you pass away) until they are able to live on their own. It is important to mention that the Term 20 coverage in this case makes sense if your kids are less than 20 years away from being independent (e.g. if they are already 7 and you expect them to be fully independent when they are 25 years old).
  • You want clearly defined protection for 20 years to protect yourself and your family (e.g. while paying off a 20-year long mortgage).
  • You want to minimize your insurance premiums for the next 20 years while having life insurance coverage. Term 20 is one of the cheapest options that you can choose from. It is important, though, to know that these premiums may significantly increase when you renew your policy.

How does Term 20 Life Insurance compare to other life insurance products?

Here is a brief comparison of how 20 year term life insurance compares to whole life insurance and universal life insurance.

 20 Year Term Life InsuranceWhole Life InsuranceUniversal Life Insurance
Coverage length20 year coverageLife longLife long
Insurance coverageYesYesYes
Cash accumulationNoYesYes
Can choose amounts going into insurance and cash accumulationNoNoYes
PricingLower than Whole Life and Universal LifeMore expensive than Term LifeMore expensive than Term Life
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What are 20 year term life insurance quotes?

Below are a few examples of 20 year term life insurance rates/quotes. It is important to remember that any life insurance quote depends on multiple factors and may vary from person to person (e.g. based on your health condition).

20 Year Term Life Insurance quote

Male, 29 years old, 20 Year Life Insurance Term, Non-Smoker, coverage amount $250,000

Rate: $18/month

20 Year Term Life Insurance quote

Female, 36 years old, 20 Year Life Insurance Term, Non-Smoker, coverage amount $400,000

Rate: $25/month

20 Year Term Life Insurance quote

Female 47 years old, 20 Year Life Insurance Term, Non-Smoker, coverage amount $350,000

Rate: $31/month

20 year vs 30 year term life insurance

Below are a few examples of 10 and 20 year term life insurance quotes for $300,000 coverage. It is important to remember that any life insurance quote depends on multiple factors and may vary from person to person (e.g. based on your health condition).

 20 Year Term Life Insurance rates30 Year Term Life Insurance rates
Male, 25 years old, non-smoker$21 / month$28 / month
Female, 25 years old, non-smoker$16 / month$20 / month
Male, 40 years old, non-smoker$34 / month$61 / month
Female, 40 years old, non-smoker$27 / month$50 / month
Interested in Term 20 Life Insurance or have questions?

10 year vs 20 year term life insurance

Please find below a few examples of 10 and 20 year term life insurance quotes for $500,000 coverage. It is important to remember that any life insurance quote depends on multiple factors and may vary from person to person (e.g. based on health condition).

 10 Year Term Life Insurance rates20 Year Term Life Insurance rates
Male, 30 years old, non-smoker$23 / month$31 / month
Female, 30 years old, non-smoker$17 / month$23 / month
Male, 50 years old, non-smoker$66 / month$129 / month
Female, 50 years old, non-smoker$45 / month$84 / month

20 Year Term Life Insurance No Medical Exam

Term 20, or 20 year term life no medical exam insurance, is a subset of no medical term life insurance. It is a version of life insurance that does not require medical tests (also called simplified issue life insurance). Some no medical life insurance types go even further and do not even require a medical questionnaire (also called guaranteed issue life insurance).

This is a great insurance choice for those who would not be approved for traditional (also called standard) life insurance, which comes with medical tests and a questionnaire to complete. Our insurance experts will help you with all of your no medical life insurance choices.

Term 20 Life Insurance Tips

1. Term 20 means that the premiums are level for the first 20 years of the policy. This is true for virtually all term plans; some companies did offer policies that gave them an option to adjust the premium during a policy year, but generally speaking, the premium remains level for the first two decades of most plans.

2. Beware of the renewal premium. Some companies offer a lower initial premium than their competitors but offer a much higher renewal premium. The renewal premium should be kept in the back of your mind because even in the best case scenarios, renewal premiums on a Term 20 are up to ten times higher than the original premium, which makes it highly unlikely that most people will keep a Term 20 policy past its renewal.

3. Make sure the policy is convertible. Most Term 20 policies in Canada are convertible to permanent plans without a medical, but, some companies do not offer conversion for their Term 20 Plans.

4. Choose a Term 20 carrier that offers preferred rates. Preferred rate plans are given to individuals in very good health who have a very good family health history. If you qualify for preferred rates, it could mean up to a 30% savings.

5. Shop around. Term 20 rates can vary widely between companies, make sure to get insurance quotes from several companies. For example, our insurance brokers work with 20+ Canadian life insurance companies and can help you to get the best Term 20 life insurance rates.

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