It’s no secret, the major downside to term life Insurance is that most people outlive their policy.
If you expect to pay off all of your debts and meet the majority of your financial obligations within in 20 or 30 years, this shouldn’t be an issue.
But what should you do if you need to secure affordable life insurance longer than 30 years?
In this post we’ve evaluated the rates and benefits that Banner’s 35-year term and 40-year term policies offer and we’ve compared them to some alternatives to help you determine if one these policies offer the best coverage for your situation.
Quick Article Guide:
- Is There 40 Year Term Life Insurance?
- How Much Does a 40 Year Term Policy Cost?
- Available Riders
- Questions? We Can Help!
Is There 40 Year Term Life Insurance?
The Banner Life/William Penn company is an A+ rated life insurance provider that offers a variety term lengths including a 35 and 40 year level term. Like traditional term policies, Banner’s OPTerm offers a fixed death benefit with guaranteed rates for set number of years.
Banner’s OPTerm policies are annually renewable until the age of 95 and they are offer a conversion option. This feature allows you to convert your term policy into permanent coverage, but it must be exercised before you reach the age of 70, or the end of your term – whichever occurs first.
Other term lengths available from Banner Life include 10, 15, 20, 25, 30 years, and you have the option to you cancel your coverage at any time without penalty. Currently, a 35 and 40 year term are available until age 45, while a 30 year term is available until the age of 55.
How Much Does a 40 Year Term Policy Cost?
With term life insurance, the longer the period of coverage your policy provides, the more expensive your premiums will be. When we are young and healthy, the increase in cost is minimal, but as we get older a longer term can double the cost of your coverage.
Let’s take look at how Banner’s rates for 30 year term compare to the cost of a 35 and 40 year level term policy.
$250,000 Term Life Rates for a Male in Preferred Health
| Age | 30-Year Term | 35-Year Term | 40-Year Term |
|---|---|---|---|
| 25 | $22.73 | $27.05 | $30.32 |
| 30 | $23.74 | $29.19 | $33.72 |
| 35 | $25.28 | $30.48 | $43.57 |
| 40 | $34.19 | $42.88 | $71.92 |
| 45 | $54.78 | $67.45 | $107.43 |
$500,000 Term Life Rates for a Male in Preferred Health
| Age | 30-Year Term | 35-Year Term | 40-Year Term |
|---|---|---|---|
| 25 | $38.81 | $46.93 | $53.22 |
| 30 | $39.99 | $49.92 | $60.63 |
| 35 | $43.56 | $53.35 | $81.99 |
| 40 | $60.76 | $78.15 | $136.41 |
| 45 | $99.24 | $127.30 | $205.86 |
Underwriting Classifications: Preferred Plus, Preferred, Standard Plus, Standard, Preferred Tobacco, Standard Tobacco, and Substandard (through Table 12)
Riders Available
If you’re not familiar, you can add life insurance riders to your policy for additional benefits. Some are free to add, while others have an additional cost. Here are the riders that OpTerm currently offers:
Waiver of Premium
This rider waives premium payments in the case that the policyholder becomes critically ill, injured, or disabled.
It is available to those through Table 4, up to a maximum face amount of 6 million dollars. All term lengths have this rider option. It’s available for those ages 20-55 for non-tobacco classes, and 20-50 for tobacco classes. WOP coverage will stop at age 65.
To waive all premiums, the client must give proof of total disability, and the disability must have existed continuously for at least 6 months.
Accelerated Death Benefit
With this rider, the death benefit can be paid early in the event of a qualifying terminal illness. The maximum ADB amount must be either less than $500,000, or 75% of the policy’s primary death benefit.
It’s treated as a lien, which earns interest over time. After the insured’s death, the death benefits payable are reduced by the total ADB lien.
Children’s Rider
This provides death benefit protection for families with one or more children. A single rider will cover all eligible children to either the child’s 25th birthday, the insured 65th birthday, or policy termination (whichever comes first). Any unmarried child, stepchild, or legally adopted child who is not older than 18 may be eligible for this rider, as long as they are a child of the insured, not the owner. This isn’t available in all states, so be sure to check with your agent if it’s available.
Term Rider
OpTerm also offers additional term riders in certain states, and these can provide temporary life insurance coverage for 10, 15, or 20 years after the initial coverage ceases. The premium rates per thousand of coverage are the same as the level OpTerm plans. Premium bands are based on each Term Rider’s face amount. Again, these are not available in all states, and the issue ages vary from the base plan, so make sure to consult with your agent to see if you qualify.
Questions? We Can Help!
Thinking about purchasing a term life policy? JRC can help!
At JRC Insurance Group, our agents are experts with multiple years of experience. We are appointed by dozens of top-rated life insurance companies and our agents are not pushy salespeople. Our agents do not have quotas; we’re here to help. We have helped hundreds of clients, and we can help you too. Our passion is finding our clients affordable life insurance coverage to protect their families.
Give us a call today, we would love to help! Toll free: 855-247-9555, or request a free quote here.
This post first appeared on JRC Insurance Group: Term Life Insurance Quotes, please read the originial post: here
