30 Year Term Life Insurance

If you are in the market for life insurance, you probably already know that you have many options when it comes to which policy to choose.

There are term life and whole life, but what does that mean in terms of the policy itself? A 30 year term life insurance is affordable when compared to whole life insurance. A 30-year term life insurance allows you to take out more dollar amount and have your premiums set for the next 30 years. If you are 50 years old, a 30-year term may be all you ever need, depending on your life span. Therefore, a whole life policy for a less dollar amount may end up costing you up to four times as much as a 30-year term policy.

What are the Pros of a 30-Year Term Life Insurance Policy?

Most agents will recommend a 30 year term life insurance, or even a 20 year term life insurance, over a whole life for many reasons, but the main reason is they can sell a higher dollar policy to their clients and still offer affordable premiums. In the end, this works out well for both sides. Term life insurance policies are easier to buy than their whole-life counterpart is.

The 30 year term life insurance policy does what it is suppose to do, which is cover your burial and provide for any dependents you have in case of your death. If you decided to take a 30-year term when you had young children, so they would be taken care of if you have a premature death. Once the policy reaches its 30-year mark, you may not need to renew it, if you invested wisely during the years or you can take out another 10 or 20-year term policy at the end if it is not renewable life insurance. A 30-year term covers the needs you have now for a growing family.

What are the Cons of a 30-Year Term Life Insurance Policy?

The biggest drawback to the 30 year term life insurance is that as long as you continue making your premiums, it will expire. For example, if you purchased the policy when your kids were young and now you are in your 60's without a lot of investments or other money that could take care of you or your spouse if one of you died. You would have to begin a brand new policy, which will no doubt cost more in premiums than it did 30 years ago.

Another drawback of course, if you outlive your policy, you do not get anything and will have to begin another policy. For example, if you purchased the 30 year term life insurance when you were 30 years old and live until you are 90 years old, you obviously will not have enough life insurance. Additionally, you will have paid a great deal of money into a policy that you never used. However, you have automobile insurance that you may have for many years and never use, but you still have to have it and normally have it with all the bells and whistles.

Insurance Company Ratings

When you decide to move forward with a 30 year term life insurance policy, research the company before you sign up with them. You can check A.M. Best to make sure they are rated a solid A before you sign up. The last thing you want is to sink your money into a 30-year term policy to a company that cannot pay upon your death. The company does not have to be the largest, it just needs a solid financial standing. The biggest is not always the best at meeting your individual insurance needs.

The most common life insurance policy is the 30 year term because it relatively cheap and easier to get when compared to a whole-life insurance plan. Just realize that if you pay the policy to term and are still living, you do not get any rewards for paying it to term. You may need to begin a new policy unless you invested wisely during the 30 years the policy was in force.