20-Year Term Life Insurance Costs in 2024


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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.

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Cost of a 20-Year Term Life Insurance Policy

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.

Factors Affecting 20-Year Policy 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.

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    Age

    Generally, young people get cheap life insurance quotes because they’re statistically less likely to die. For older people, a 20-year policy would cost more.

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    Gender

    Statistically, women live longer than men. They also pay lower insurance premiums than men.

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    Health Status

    Insurance companies typically look at your medical history, height and weight, smoking habits and family medical history before giving you a quote. Individuals with severe medical conditions are considered risky to insure, so they pay more expensive life insurance rates.

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    Lifestyle

    Insurance companies determine your premiums by considering your lifestyle, driving history, criminal record, occupation and other financial factors.

20-Year Policy Costs by Coverage Amount and Age of Buyer

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.

20-YEAR TERM LIFE COST BY COVERAGE & AGE
30-Year-Old$17$28$50
40-Year-Old$26$44$83
50-Year-Old$58$106$203
60-Year-Old$150$286$556
70-Year-Old$752$1481$2988

20-Year Policy Costs if You Smoke or Are in Poor Health

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.

20-YEAR TERM LIFE COST FOR SMOKERS OR PEOPLE IN POOR HEALTH
Data filtered by:Results filtered by:
Health Status:
Health Status:Smoker
30-Year-Old$38$65$118
40-Year-Old$57$102$196
50-Year-Old$128$247$478
60-Year-Old$331$668$1308
70-Year-Old$1666$3455$7035

Cheapest Life Insurance Companies for 20-Year Term

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.

20-YEAR TERM COST BY COMPANY & COVERAGE
Allstate$17$28$49
Transamerica$18$28$49
GEICO$19$31$49
Protective$19$31$54
Nationwide$23$36$63
Mutual of Omaha$23$37$69
Prudential$24$46$90
AAA$25$40$70
State Farm$25$40$69
Haven$26$45$83
Fidelity$30$51$149
American Family Insurance$32$58$107
Bestow$34$61$115
Progressive$44$77$149
Gerber$80N/AN/A
20-YEAR TERM COST BY COMPANY FOR SMOKERS

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.

Allstate$38$65$115
Transamerica$39$66$116
GEICO$41$73$116
Protective$41$73$128
Nationwide$50$84$149
Mutual of Omaha$51$87$162
Prudential$52$106$211
AAA$55$93$166
State Farm$56$93$162
Haven$57$104$196
Fidelity$66$120$351
American Family Insurance$72$136$252
Bestow$76$141$271
Progressive$97$180$351
Gerber$177N/AN/A

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.

20-YEAR TERM COST BY COMPANY FOR THOSE IN POOR HEALTH
Allstate$19$34$60
Transamerica$20$35$61
GEICO$21$38$61
Protective$21$38$67
Nationwide$25$44$78
Mutual of Omaha$26$46$85
Prudential$26$56$111
AAA$28$49$87
State Farm$28$49$85
Haven$28$55$103
Fidelity$33$63$184
American Family Insurance$36$71$132
Bestow$38$74$142
Progressive$49$94$184
Gerber$89N/AN/A

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.

20-YEAR TERM COST BY COMPANY FOR 50-YEAR-OLD BUYERS
Allstate$38$70$130
Transamerica$39$71$133
Protective$41$76$142
GEICO$41$71$133
Prudential$47$86$163
Nationwide$48$86$165
State Farm$50$91$170
Mutual of Omaha$52$93$180
AAA$57$106$203
American Family Insurance$62$117$219
Bestow$82$145$277
Progressive$99$183$361
Fidelity$99$183$361
Gerber$149N/AN/A

Compare Life Insurance Rates

Ensure you’re getting the best rate for your life insurance. Compare quotes from top providers to find the most affordable life insurance coverage for your needs.

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Insurance Rates

Is a 20-Year Term Life Policy Right for You?

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.

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PROS

  • Level premiums
  • Tax-free death benefits
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CONS

  • No cash value
  • Temporary coverage

How Much Life Insurance Do You Need?

Answer three simple questions to get your recommended coverage amount.

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What Happens After the 20-Year Term?

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.

Frequently Asked Questions About 20-Year Term Life

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.

How does a 20-year term life policy work?

How much does a 20-year term policy cost?

Can term life be extended after 20 years?

About Mark Fitzpatrick


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Mark Fitzpatrick is a Licensed Property and Casualty Insurance Producer and MoneyGeek's Head of Insurance. He has analyzed the insurance market for over five years, conducting original research and creating personalized content for every kind of buyer. He has been quoted in several insurance-related publications, including CNBC, NBC News and Mashable.

Fitzpatrick earned a master’s degree in economics and international relations from Johns Hopkins University and a bachelor’s degree from Boston College. He is passionate about using his knowledge of economics and insurance to bring transparency around financial topics and help others feel confident in their money moves.