30 Year Term Life Insurance Policy

Why To Choose 30 Year Term Insurance Plan?
How Does a 30-Year Term Life Insurance Policy Work?
Pros and Cons of a 30-Year Term Life Insurance Policy

Since coverage will continue for 30 years, the majority of insurance companies will not issue a policy to an applicant over age 50. But the good news is people who are older than 50 can buy a 20 or 25-year term policy. The most important takeaway, however, is finding out that you can convert your 30-year term life insurance to permanent insurance and not have to go through medical underwriting.

Why To Choose 30 Year Term Insurance Plan?

To determine if a 30-year term policy is right for you, we always go back to your reason for buying life insurance in the first place. Most people buy 30-year term insurance to replace their income so that surviving loved ones can continue without financial hardship.

Note: It’s also important to note that with 30-year level term insurance, your monthly insurance payment will not go up during the entire 30 years of coverage, even if you become seriously ill or have to live in a nursing home.

How Does a 30-Year Term Life Insurance Policy Work?

A 30-year term policy is straightforward with virtually no moving parts. It’s the simplest form of life insurance because there is no cash component attached and the fees are nominal.

Once your policy is issued, you simply pay your periodic premium (monthly, quarterly, or annually) and if you die anytime during the 30-year policy period, the insurance company will pay your beneficiary the death benefit in a tax-free lump sum payment. A 30-year term life insurance policy consists of three simple guarantees.

Your insurance coverage will remain in force for 30 years as long as you pay your premiums.
Your periodic premiums can never be increased by the company.
The death benefit is guaranteed for the entire 30-year term.

Pros and Cons of a 30-Year Term Life Insurance Policy

When it comes to the pros and cons of any term insurance, the advantages and disadvantages will depend on why you purchased the policy in the first place. In other words, your need for life insurance should determine the type of life insurance you purchase. The pros and cons of a 30-year term life insurance policy compared to a permanent policy like whole life insurance are rather apparent.

**Pros and Cons of a 30-Year Term Life Insurance Plan**
Pros of 30-Year Term Life Insurance	Cons of 30-Year Term Life Insurance
Other than accidental death insurance, Term Life Insurance is the least expensive type of life insurance available. Most term policies can be converted to permanent insurance policies without the need for additional medical underwriting. Most companies offer several optional riders that will allow you to broaden your coverage and take advantage of living benefits. Typically, an applicant can start coverage by making only a one-month payment.	Term insurance is temporary. Although in most cases, the policy can be renewed, the renewal premium will be based on your renewal age and much higher. Term insurance has no cash value which means if you cancel the policy or let it expire, there is no cash coming back to you. Unless you purchase a Level Term Policy, your premiums could increase as you get older. Term insurance has no flexibility. Once your policy is issued, the death benefit and periodic premiums are etched in stone.