Once you get to know 20-year term life insurance policies, you’ll see that they can help you save considerable amounts of money on premiums. They lock in guaranteed death benefits for as long as you’ll need them. And, because of these two things, they meet the needs of all kinds of people. Whether you’re a young professional and first-time policyholder or someone in middle age, they hold attractive benefits.
In short, a 20-year term policy works just as it sounds with a promised death benefit guaranteed during the life of the policy (20 years). After this time, the policy expires (unless you convert it), which is usually after your need for coverage has dramatically dropped with regard to your children, spouse, or other dependents.
As part of this term-based guarantee of death benefit payouts to your beneficiaries in the event of your passing, the life insurance policy itself comes with level premiums. Level premiums never change, unlike variable premiums. They’re a way to cement a great rate on a time-limited policy.
These two primary features of term-based policy lasting for 20 years make life insurance excellent for a new family, those in middle age needing coverage until retirement, and people just starting their career while taking on financial responsibilities. Learn the benefits of 20-year term insurance, and then get quotes with Sproutt below.
As with all life insurance, the specifics of what you get for the premium you pay can be various, but term policies tend to be quite similar. You can collect the rewards of a term policy through five benefits that will help you get a sense of financial safety from being a policyholder.
Direct Beneficiary Payouts
Whoever you name in your life insurance policy as a beneficiary will receive the full, entitled payout in the event that you pass away during the term. The only conditions are that the unfortunate even passes a contestability period and doesn’t fall outside the coverage terms. A valid activation of the benefits promises payouts.
Permanent and Convertible Options
You can, in some cases, change the term length of your policy if you need to. You can also choose, if you like, to cancel the policy at any time with an insurer, making it so you’re not tied down by another contractual obligation if you decide insurance is unnecessary during a certain period of time.
Then, at the end of the term, you often have the option to change your term-based policy into a permanent one to keep your coverage going. This can be useful for many people who seek to leave a death benefit (and sometimes cash value) to those they name as beneficiaries.
Death Benefits Guaranteed
The death benefits of your life insurance policy are guaranteed. That means there are very few, rare reasons that payments and payouts wouldn’t go directly to your beneficiary. No matter if your policy was active for five years or 15 years, the policy will pay out, and it’s very clear that there is hardly an exception that applies to the broad majority of cases.
To make insurance simpler and more satisfying as a buying process, most term policies enjoy accelerated underwriting. You can get your life insurance quote using electronic records and online tools that speed up the process of moving from application to acceptance. Sproutt, for example, evaluates your interest with highly regulated filing with each state’s Department of Insurance.
Low and Level Premiums
You can probably tell from these sweeping benefits that 20-year term life insurance policies tend to be easier to understand, more flexible, and quicker in approvals. They can create an easy, seamless experience of getting essential coverage, but their popularity makes it so that insurance companies must stay competitive by offering low rates on premiums.
Through level benefits that don’t change as your risk increases with age, you can save a lot of money on premiums compared to whole or universal life insurance policies. With those permanent forms, you can expect to pay more year over year. The lower premium attracts young buyers and keeps the market fair, getting the lowest premiums for the best death benefits available.
With these benefits in mind, you can see how 20-year term insurance works for a diverse range of life insurance seekers. If you’re looking for guaranteed benefits with low rates as well as flexibility and a quick underwriting process, you can explore quotes and policies with Sproutt.
Sproutt is an online life insurance broker using industry insight and advanced evaluation tools to quote the most competitive rates on the highest quality policies.
Disclaimer: MoneyMagpie is not a licensed financial advisor and therefore information found here including opinions, commentary, suggestions or strategies are for informational, entertainment or educational purposes only. This should not be considered as financial advice. Anyone thinking of investing should conduct their own due diligence.