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What is 20-year term life insurance?
A 20-year term life insurance policy provides coverage for a fixed term of 20 years, offering a straightforward and affordable way to protect your loved ones financially in the event of your death. Unlike permanent life insurance, which lasts for your lifetime, term life insurance is designed for a set period, making it a cost-effective option for those who need temporary coverage.With a 20-year term policy, you pay fixed premiums throughout the term, which remain the same for 20 years. This makes budgeting predictable and manageable, especially for families with young children or those paying off a mortgage. The death benefit is paid to your beneficiaries if you pass away within the 20-year period, and it can be used to replace lost income, cover expenses, or pay down debt.This type of life insurance may be ideal for individuals who want significant coverage at an affordable price for a specific period—whether to cover a mortgage, support a family, or protect a business partnership during critical years.
Key Features of a 20-Year Term Life Insurance Policy
As you shop for life insurance, there are several policy options to consider, which can vary in cost, coverage, and length. Term life insurance is a popular life insurance option due to its affordability compared to permanent life insurance. Term life insurance provides you coverage for a set period of time, typically ranging from ten to 30 years. If you pass away during the policy period, your beneficiaries receive the death benefit, which can offer them financial security and peace of mind.When determining whether a 20-year term life insurance policy is right for you, you should consider factors such as your income, age, family makeup, current financial responsibilities, and goals. Here’s a look at some of the key features of this type of coverage:
- Death Benefit: If the insured passes away during the 20-year term, the policy pays a death benefit to the beneficiaries. This amount is typically tax-free and can be used to replace lost income, pay off debts, or cover other financial needs.
- Fixed Premiums: One of the main benefits of a 20-year term life insurance policy is that premiums remain level and fixed throughout the term. This provides predictability and stability, helping you budget for the cost of coverage over two decades.
- Affordable Coverage: Term life insurance, especially a 20-year policy, is typically much more affordable than permanent life insurance. The premiums are lower because the policy provides coverage for a limited time and doesn’t build cash value.
- Renewability: Some 20-year term policies offer the option to renew at the end of the term, though premiums will increase based on your age at renewal.
- Convertible Options: Many 20-year term policies allow for conversion to a permanent life insurance policy without the need for a medical exam, providing flexibility if your needs change over time.
Who benefits from a 20-year term life insurance policy?
A 20-year term life insurance policy is typically a good fit for people with families, including spouses and children, who want to ensure their partners are financially taken care of in the event the worst should happen. A family with very young children, however, may benefit more from a 30-year term, while a family with older children may consider a 10- or 15-year policy. How do you know if a 20-year term will be long enough? In general, life insurance policies should last the length of your longest financial obligation, and the variety of term lengths is one of the key benefits of term life insurance. Many people who buy 20-year life insurance policies are in their early to late 30s, and their financial priorities often include:
Supporting children through college
By opting for a 20-year term life insurance policy, you can ensure that your child's education expenses are covered in case something unfortunate happens to you during that period. If you were to pass away while the policy is in effect, the death benefit would be paid out to your beneficiaries, offering them the necessary funds to cover college tuition costs.
Planning to pay off a mortgage
With a 20-year term life insurance policy, you pay fixed premiums for 20 years, and if you pass away during this period, your beneficiaries can use the policy’s death benefit to pay off your mortgage. This can provide tremendous relief for your family, as they won't have to worry about making mortgage payments or potentially losing their home.
Paying off debts
If you were to pass away during the 20-year term, the death benefit paid out to your beneficiaries can be used to settle your outstanding debts, ensuring that your family is not burdened with the financial responsibility.
Creating a safety net for your future
A 20-year term life insurance policy can play a crucial role in your retirement planning and investment strategy. By opting for a term life insurance policy, you can ensure financial protection for your loved ones while freeing up additional income to invest in tax-advantaged retirement accounts.
As you consider your goals and plans over the next 20 years, you may find that a 20-year term life insurance policy could be a good fit for you. With a 20-year term life insurance policy, the money will be there if you need it to help handle life’s important expenses, and you can rest assured your plans and future are secure, even with the loss of an income.
Alternatives to 20-Year Term Coverage
While a 20-year term life insurance policy is a great choice for many, there are several alternatives that may better suit your needs depending on your life stage, financial goals, or coverage preferences. Here are a few options to consider:
- Whole Life Insurance: Whole life is a type of permanent life insurance that provides coverage for your entire lifetime, as long as premiums are paid. It also builds cash value over time, which can be borrowed against or used for other purposes, like paying for a child’s college or starting a business. While it is more expensive than term life insurance, it offers long-term security and financial benefits beyond a death benefit.
- 30-Year Term Life Insurance: If you’re looking for a longer coverage period, a 30-year term policy might be a better fit. It offers the same benefits as a 20-year term policy, but with extended coverage for an additional 10 years, which may be useful for those with longer financial commitments, such as extended mortgages or supporting children into adulthood.
- Return of Premium (ROP) Term Life Insurance: This policy is similar to a traditional term policy but includes a provision that refunds the premiums paid if you outlive the term. It offers the same temporary coverage but with the added benefit of getting your money back if you don't pass away during the policy term.
- Universal Life Insurance: A flexible permanent life insurance option, universal life allows you to adjust premiums and coverage amounts over time. It also accumulates cash value, offering more flexibility than whole life insurance. However, it can be more complex to manage.
What happens after the 20 years of your term are up?
As you approach the end of your 20-year life insurance policy, you have a few options to consider. You may consider renewing your policy to maintain the same coverage you already had, although it’s important to note that premiums may increase with every renewal. In most cases, term policies can be renewed on a year-to-year basis until you reach the age of 95.Alternatively, you may want to convert your coverage into a permanent life insurance policy. This allows you to maintain coverage for the rest of your life as long as you continue to pay the premiums. Converting to a permanent policy may be beneficial if you want lifelong coverage and potentially build cash value over time. If you decide to forego these options and allow your policy to expire, no further action is required on your part. You will simply no longer have coverage, and your beneficiaries will not receive a death benefit.
Understanding 20-Year Term Life Insurance Rates
20-year term life insurance rates are based on a variety of factors that allow carriers to evaluate how risky you are to cover. They typically review aspects of your life, including your:
- Gender: Women statistically live longer than men, so they tend to pay lower insurance premiums.
- Age: In most cases, the younger you are, the more affordable your life insurance premiums are because you are statistically less likely to die than an older person.
- General Health: You can expect to pay lower premiums if you’re in excellent health. Insurance companies will record your height, weight, and medical history, including any personal or family history of chronic conditions like heart disease or diabetes.
- Hobbies and Habits: Lifestyle habits that can impact your rates include smoking, drinking, risky hobbies, your driving history, and whether or not your occupation is considered dangerous.
Example Rates for 20-Year Term Life Policies
| Age / Sex | $250,000 Coverage Amount | $500,000 Coverage Amount | $1M Coverage Amount |
|---|---|---|---|
| 25-Year Old Female | $10.56 | $15.00 | $21.72 |
| 25-Year Old Male | $11.99 | $18.14 | $28.89 |
| 35-Year Old Female | $11.67 | $16.99 | $28.04 |
| 35-Year Old Male | $13.19 | $19.97 | $32.10 |
| 45-Year Old Female | $20.97 | $35.69 | $65.44 |
| 45-Year Old Male | $25.73 | $45.04 | $84.14 |
| 55-Year Old Female | $44.49 | $82.02 | $157.03 |
| 55-Year Old Male | $59.13 | $112.19 | $215.77 |
Table rates are based on a 20-year term policy for men and women in excellent health from one or more of the trusted companies we represent. Rates were pulled 7/2025. Your price could vary depending on your health, issuing company, and other factors. Not available in all states.
How to Get 20-Year Term Life Insurance Quotes
Once you’ve decided a 20-year term life insurance policy is the right amount of coverage for you, it’s time to buy. At SelectQuote, we simplify the process of finding life insurance from beginning to end, guiding you through the shopping process, application, and purchasing of coverage. Here’s what you can expect when buying a 20-year term life insurance policy through SelectQuote:
1. Get a free term life insurance quote from SelectQuote by working with one of our experienced licensed agents, who will step you through the policy options that make sense for your unique situation.
2. Choose the amount of term life insurance coverage that’s right for you
3. Apply and buy a 20-year term life insurance policy with one of the trusted insurance carriers we work with
Here’s a look at some frequently asked questions about 20-year term life insurance coverage:
How much is a 20-year term life insurance policy?
The cost of a 20-year term life insurance policy is generally more affordable than permanent life insurance policies, such as whole life or universal life insurance, because it provides coverage for a limited time and does not accumulate cash value.
Is 20-year term life insurance worth it?
Yes, a 20-year term life insurance policy can be well worth it, especially for those seeking affordable, temporary coverage. It offers a cost-effective way to protect your family or cover specific financial obligations during a critical period, like a mortgage or raising children.
Can I sell my 20-year term life insurance policy?
Yes, you can sell your 20-year term life insurance policy through a process known as a life settlement, but it's important to note that term policies are generally less valuable than permanent policies when sold. Life settlements typically require that the policy is nearing its term or has a significant remaining term, and the buyer would take over premium payments while receiving the death benefit upon your passing.
Can you borrow from a 20-year term life insurance policy?
No, you cannot borrow from a 20-year term life insurance policy. Term life insurance does not build cash value like permanent policies (such as whole life or universal life), so it doesn't provide the option to take out loans against it. If borrowing against a policy’s cash value is important to you, you may want to consider a permanent life insurance policy instead.
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If you’re ready to find a 20-year term life insurance policy, contact us at SelectQuote. We work with some of the most trusted life insurance companies in the industry, so we’re able to get you multiple quotes in just minutes, making it fast and easy to compare policies and get the coverage you need. Talk to one of our experienced licensed insurance agents to find out how you can get 20-year term life insurance that suits your budget and priorities.
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Still unsure if a 20-year term life insurance policy is right for you? Check out our other life insurance options.
The easiest way to figure out what term length is right for you is to work with SelectQuote. Whether you’re interested in a 20-year term policy or need a longer or shorter term length, we can shop some of the most trusted insurance companies on your behalf. Our in-depth process allows us to compare coverage and rate options in just minutes to ensure you and your loved ones are protected.
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