Understanding 20 year term life insurance is not very difficult once you break the pieces of the coverage down into smaller parts. There are in fact a bunch of different types of life insurance that can be explored. If you came here to get a life insurance quote then just fill out the form on the side of this page. The rest of this article will help you to understand 20 year term life insurance and break it down in easy to digest pieces.
Life insurance is one of the best investments that you’ll ever make for the future of your family. Life insurance is one of the only ways that you can ensure that your family will have the money that they need, regardless of what happens to you.
There are two main types of life insurance; whole life insurance and term life insurance. Term life insurance is the simpler of the two to understand and we will stick to that one since it helps us better understand 20 year term life insurance. Basically term life insurance is an agreement between the life insurance company and an individual where you pay a premium that does not change for a specific period of time (the term) and they agree to pay your beneficiaries a specific amount if you were to pass away.
Let’s break that down in a quick example. I took out a $500,000 20 year term life insurance policy and pay a $1,000 a year policy. This means that I will pay $1,000 each year for 20 years without having to worry about the premium changing. On top of that if you were to pass away any time during those 20 years, assuming you paid the premiums, your beneficiary (spouse, children, etc.) would receive $500,000. It is a straight exchange of money for coverage. There are no accounts, or investments just insurance. It is just as plain and boring as auto insurance or home owners insurance. The only difference between this and whole life insurance is that whole life insurance includes an investment and does not have a time when the term ends. This, of course, means that whole life insurance is MUCH more expensive than 20 year term life insurance.
It’s vital that you calculate how much life insurance your family will need before you apply for a plan. Not having enough life insurance can be as bad as not having a plan at all. There are several key factors that you’ll need to account for when you’re determining your life insurance needs.
The first number that you should crunch is your overall debts and expenses that your family would be left with if something tragic to you. The main goal of your life insurance is to give your family the money that they need to pay off any major expenses that your family would be responsible for. Before you purchase a life insurance plan, add up your mortgage, student loans, business loans, and any other large bills and make sure that your life insurance coverage is large enough to pay off those bills.
The next number that you should look at is your annual income. The secondary purpose of your life insurance policy is to replace your salary if something were to happen to you. If you’re one of the main income earners in your home, then your family would struggle financially if you were to pass away, but that’s where your life insurance comes in. It will give them the money that they need to replace your paycheck.
You should also consider any final expenses that your family would be required to pay if you were to pass away. Many applicants don’t realize how expensive a funeral can be. The average burial is going to cost around $10,000, which can be difficult for a grieving family to pay for. Make sure that you add in any funeral costs and other related fees that they would have to pay off.
WHen you’re looking to get life insurance, it’s important that you get the most affordable rates possible. There are several ways that you can secure lower premiums from the insurance company and keep more money in your pockets. Making a few simple lifestyle changes can help you save thousands of dollars every year.
The best way to save money on your insurance coverage is to cut out any tobacco that you currently use. If you’re a smoker when you’re applying for coverage, you should expect to get much higher rates for your insurance plan. In fact, smokers are going to pay twice as much for their plan versus what a non-smoker is going to pay for an identical plan. With some companies, you could even pay three times as much.
Another way that you can save money is by improving your overall health. Before the company approves your application for a 20-year term plan, they are going to require that you take a medical exam, and the results of the exam are going to play a major role in how much you pay every month for your plan. If you want to save money, you need to get better results from the medical exam. If you are not capable of passing the exam due to health issues, don't worry just yet, there are other options out there for you, such as the no physical exam life insurance plan.
The two easiest ways to do that are by getting regular exercise and sticking to a healthy diet. Both of these are going to help you lose weight, lower your cholesterol, reduce your chances of being diagnosed with health complications, and much more. All of those are going to secure you better premiums from the insurance company, which means more money in your pockets. If you’re overweight, then you’re going to pay at least 50% more for your life insurance.
The best way to save money is to compare dozens of insurance quotes before you decide which company is going to give you the lowest premiums. Every insurance company is different, which means that they all have different medical underwriting and you’ll get drastically varying rates depending on which company that you get the quote from. Some companies are going to offer you much lower rates than other companies.
There are thousands and thousands of companies on the market, which means that you could spend weeks trying to find the best rates for you. Instead of spending hours and hours on the phone calling different agents, let one of our independent insurance brokers do all of the hard work for you. Unlike a traditional agent, we work with dozens of highly rated companies across the nation, which means that we can bring all of the best policies straight to you.
In most cases, a 20-year term life insurance policy is going to be more affordable than you may think. A lot of our applicants are surprised to see how cheap a life insurance policy can be. Regardless, you can’t put a price tag on the peace of mind that life insurance will give you.
Getting rates for 20 year term life insurance is easy. Just fill out the form on the side of this page. Giving you a ball park figure on a rate for you personally is impossible. The rate you get for your term life insurance is subject to your age, health, location, occupation and a few other risk factors. The only way to get a real quote for you is to answer the questions honestly and get a set of quotes for the least expensive companies in your area. At TermLife360.com we are dedicated to helping you find the best rates on 20 year term life insurance and are happy to answer any questions you may have.
You never know what’s going to happen tomorrow, which means that you shouldn’t wait any longer to get the best plan for you and your loved ones. If you have any questions about a 20-year term insurance policy, then please contact one of our agents today. We would be happy to answer those questions and ensure that you’re getting the lowest premiums available.
We know that nobody wants to think about his or her death, but not planning for the inevitable is one of the worst mistakes that you can make for your loved ones. Contact us today and we can get the process started.