Here at I&E, we understand that when most folks are looking to purchase a Term Life Insurance policy, what they’re really looking to do is to try and find the most affordable life insurance policy, which will protect their loved ones during the most “vulnerable” time of their lives.
And in most cases…
This means that they’ll be looking to purchase a life insurance policy that will last longer than 10 or 15 years.
The problem with this is that most life insurance companies don’t like to advertise their 30-year rates, because from an advertising stand point, hearing what it might cost to protect your family for the next 10 years or so, is going to sound much more affordable, than it would to hear what it might cost to insure them for the next 30!
If you are a healthy individual in your mid 30s, what are the chances you are going to die or become seriously ill before you’re mid 40s? Probably pretty low.
This is why…
We here at I&E wanted to provide our readers with an opportunity to see what it might cost to purchase a 30 year term life insurance policy, as well as provide one with a few “tips” on what other options they may also want to consider when determining which life insurance company might be the “best” one for them.
30 Year Term Life Insurance Rates
30 year term life insurance is available for those 55 and under. Many people like the 30 year term because it covers a typical mortgage on their home residence and because historically, it was the longest term offered.
However, 40 year term life insurance coverage is now available for applicants up to age 45.
The following 30 year term life charts are based on ages 20-80 from top rated life insurance companies given an A- rating or higher from AM Best.
The Best 30 Year Term Life Insurance Companies
When considering the best companies that offer 30 year term life, it is important to consider several factors.
Most people only focus on price. They simply want the cheapest 30 year term life insurance policy.
However, some other important factors to consider are:
Who offers the cheapest 30 year term life insurance based on your health profile?
You see, some companies are better than others when it comes to various health and lifestyle factors, so applying for coverage with one company could mean a standard rate class, whereas if you had applied with a different company you might have qualified for a preferred rate class.
So in the end, the cheapest company for 30 year term rates is different for you than for someone else, based on which company caters to your specific health and lifestyle profile.
Which company offers the best convertible term life insurance?
Another important factor that most fail to consider is who offers the best convertible term life insurance.
All too often someone gets a 30 year term life policy and then a few years later they wish they had gotten permanent life insurance.
In some cases this is fine because the company they chose to go with offers great options for their convertible insurance policy to be converted into.
However, many of the lowest cost 30 year term life insurance companies offer poor permanent coverage, or perhaps none at all.
So if you are even considering keeping life insurance for your entire life, make sure you choose a company that offers 30 year convertible term life insurance, with permanent options you would actually want.
Some of our top providers of convertible term life insurance include:
You can read about these companies and more on our list of life insurance companies page.
How Much Does 30 Year Term Life Insurance Cost?
Life insurance rates are determined by the rate class the insurance underwriter assigns to you.
Life insurance underwriting is the process by which a company determines what health rating (rate class) to assign you. Your rate class is determined by several factors.
Among the most heavily weighted factors determining your rate class are:
- Your age
- Your height to weight ratio
- Your health history
- Family health history
In addition, most policies require some underwriting. Underwriters draw from a variety of sources when determining your risk level.
The different sources a life insurance underwriter looks at include:
- Medical Information Bureau, AKA MIB
- Prescription Database
- Motor Vehicle Record
- Bankruptcy History
An underwriter will take all this into consideration and give you a rate class based on the totality of the information.
The different life insurance rates classes include:
- Preferred Best
- Standard Plus
- Table Rated (A-F)
Your assigned rating will determine your life insurance cost. The better your rating, the lower the cost of your life insurance will be.
You can also chose from fully underwritten coverage and no medical exam life insurance.
Exam vs No Exam
There was a time when 30 year term life insurance without an exam would cost a lot more than the same coverage with an exam.
However, accelerated underwriting and big data has changed this dramatically, so that now you can typically find no exam 30 year term life insurance for around the same price as a policy that requires an exam.
Long Term Care & Chronic Illness
Another factor to consider that may influence the cost of your 30 year term is living benefits.
Living benefits are optional add-ons to your coverage that provide you with benefits while you are alive versus the death benefit which helps out your beneficiary when you die.
Among the different living benefits are the long term care rider and chronic illness rider.
These riders may increase your premiums but they also provide a great financial relief if you ever need to exercise this option for taking care of you later in life due to a terminal illness or chronic health condition.
Waiver Of Premium
Different life insurance riders will influence your cost of coverage as well. Among the more popular term life insurance riders is the waiver of premium rider.
The waiver of premium is great to have as part of your 30 year term policy as it provides the additional benefit of paying your premiums if you suffer a qualifying disability.
Who Should Buy A 30 Year Term Life Insurance Policy?
30 year term policies are great for anyone looking for protection that lasts a long time, but who don’t want permanent life insurance.
For example, the most popular reason for a 30 year term is to cover a mortgage on a primary residence.
Since most mortgages are 30 years, having life insurance in place for the duration of the mortgage to pay off your home if you die prematurely is a great option.
30 year term is also beneficial for anyone newly married and looking to start a family. The term coverage can provide income replacement for the primary bread winner of the household.
And since on average most people have 2 or 3 children, having coverage that lasts as long as the youngest child is dependent is a great idea.
What Happens At The End Of the 30 Year Term Life Insurance Policy?
It is important to understand that at the end of your 30 year term your policy will expire and you will be required to renew the policy, typically on an annual basis, for a much higher premium.
If you cannot make or chose not to make the new, higher premium, you will no longer have life insurance coverage.
That is why you should consider all of your options, including convertible term life and permanent life insurance.
Finding the best 30 year term life insurance is not as straightforward as simply doing a google search and clicking on the first result that pops up.
Instead, finding an agency that understands the nuances of the various companies and can place you with the one company that will provide you with the best shot at obtaining the lowest price is the best route to take.
At I&E, we will take the time to ask you the right questions so that we can work with you to find you the most affordable 30 year term life insurance policy that best meets your needs, based on your unique goals and objectives.
So, what are you waiting for? Give us a call today to see what we can do for you.