20-Year Term Life Insurance Costs in January 2024

Life insurance provides a financial safety net for your loved ones, and one option that many people consider is a term policy. Depending on the company, the term length may vary. Among the common choices is the 20-year term life insurance. This type of policy offers level premiums and a guaranteed death benefit for two decades.

On average, a 20-year term life insurance policy costs $26 per month. However, rates may vary depending on your individual profile and other factors. MoneyGeek analyzed 20-year term life insurance policy rates to help you determine if it's the best option for your needs and circumstances.

• Cost of a 20-Year Term Life Insurance Policy
• Cheapest Life Insurance Companies for 20-Year Term
• Is a 20-Year Term Life Policy Right For You?
• What Happens After the 20-Year Term?
• Frequently Asked Questions About 20-Year Term Life

Insurance companies determine 20-year term life insurance costs after considering various factors. The average monthly premium for a 40-year-old non-smoker male with $250,000 in coverage is $26. Smokers face a higher average monthly cost of $57 for the same policy, while those in poor health can expect an average premium of $28 per month.

Collect quotes from several insurance companies to obtain an accurate estimate and identify the insurer with the most favorable terms and cost.

Different factors affect the cost of a 20-year term life insurance policy. Knowing what these are can help you pick the right coverage.

The 20-year term life insurance cost can vary depending on your age and the extent of your coverage. MoneyGeek collected average costs for people of different ages looking for policies with varying coverage amounts.

Since smokers have higher chances of getting lung disease and dying at a young age, they are considered risky to insure and pay expensive life insurance quotes. MoneyGeek analyzed the cost of a 20-year term policy for smokers and people in poor health.

MoneyGeek collected quotes from various companies to help you identify the cheapest life insurance options for a 20-year term policy. Based on average rates, Allstate offers the most affordable policy with $250,000 in coverage at just $17 per month. For those seeking higher coverage amounts, Allstate is also the cheapest option. The company has an average monthly rate of $28 for a $500,000 policy and $49 for a $1 million plan.

The following table provides a breakdown of pricing between different insurance providers.

Smokers tend to have higher life insurance premiums than non-smokers. Based on MoneyGeek's data, Allstate offers the most budget-friendly option for smokers seeking $250,000 in coverage, with an average monthly premium of $38. It's also the cheapest insurance company for smokers looking for higher coverage amounts. It charges an average of $65 per month for $500,000 and $115 for $1 million in coverage.

For individuals in poor health seeking a 20-year term life insurance policy, finding an affordable option can be challenging due to higher risk factors. Allstate generally offers the lowest rates at various coverage levels. The average monthly premium for $250,000 in coverage is $19, $34 for $500,000 and $60 for $1 million.

Premium rates often increase with age, but prices can differ among companies. For 50-year-olds, Allstate offers some of the most budget-friendly options, with monthly premiums of $38 for $250,000 in coverage, $70 for $500,000 and $130 for $1 million. See the table below for a side-by-side comparison of insurance premiums.

A 20-year term life insurance plan offers a straightforward way to financially protect your loved ones for a specific period. It's ideal for those with financial obligations ending in the next 20 years, such as mortgages and student loans. It's also a solid choice if you have young children and want to pay for their college education.

With a 20-year term life insurance policy, you pay a fixed monthly premium for 20 years to keep your policy active. Your family will receive a tax-free cash payment if you pass away during this period.

This policy type often costs less than permanent life insurance since it only provides temporary coverage. It will expire after the 20-year term. Depending on your policy, you can switch or extend your coverage.

After the 20-year term ends, you can either let your policy expire, renew it at a higher rate or convert it into a permanent life insurance policy.

The decision to get a new term life policy depends on your coverage needs. If you still have your spouse or children as dependents, don’t have savings for end-of-life expenses or have a mortgage to pay, it’s often best to get a new term life policy.

On the other hand, if you don’t have any significant financial or personal obligations, you can let the policy expire.

Knowing the answers to some frequently asked questions about a 20-year term life insurance policy may help you understand how it works and determine if it’s the right choice for you.