Term life insurance comes in quite a lot of forms, and 25 year term life insurance is no different.
The most common types of term life are 20-year and 30-year, but as consumers needs persistently change, more and more carriers are adopting new policies.
A 25 year term life insurance product can fit a few different situations, and for some middle-aged buyers, represents a huge opportunity.
One of the best advantages of a term insurance policy is the fact that you can buy them to meet the needs of your family. For some people, a 20-year term is going to be too short, but you shouldn’t have to pay for the extra 10 years of coverage. For some applicants, a 25-year term insurance policy could be the best option for life insurance coverage.
Today’s discussion breaks down this type of policy, and presents a few unique ways to use it.
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25 Year Term Life Insurance Policy
Term life insurance is used to cover a lot of different financial obligations:
- Business Loans
- Income Replacement
- Final Needs
When it’s purchased, it should be purchased for a specific reason, and the duration should match the obligation. It’s common for a person to purchase a 30-year mortgage to keep payments as low as possible, and a 30 year term life insurance policy fits it quite nicely.
So, where does a 25 year term life insurance policy fit?
While it covers the same sort of needs mentioned above, there are some special uses for this duration of term life insurance.
The 59 Year Old
What does a person who is 59 years old have to do with a 25 year term life insurance policy? It might be the last year he could purchase a 25 year term policy!
When a term policy is applied for, the carrier offering the coverage won’t likely cover the insured with a term duration going beyond what their life expectancy is. This would create too much risk. Instead, the duration of the policy can usually go up to that age. If you are needing quotes from high risk life insurance carriers, we can help.
A 59 year old male today may have a life expectancy of age 84. If this is the case, it’s exactly 25 years from now. Once the male turns 60, he would be ineligible for a 25 year term life insurance policy, and would have to resort to a 20 year term policy, which would only cover him to age 80.
By waiting that extra year and having to buy a shorter term, he is missing coverage on 4 very vital years of his life.
If you’ve found yourself in this type of situation, you can still go ahead and opt for the 20 year term, but if you still want coverage beyond age 80, you’ll have to look into a universal term product, like a Term To 90 or guaranteed universal life insurance product.
You always have options for coverage to any age, as long as you can qualify, but the price is the greatest deterrent to these policies. Keep this in mind.
The 40 Year Old
Any guesses on the 40 year old and why they might need a 25 year term life insurance policy?
If you guessed something with age 65, you’d be right.
Not only is age 65 a very common age for someone to retire, but it’s also key age for many other insurance type of benefits or social security. The reason someone might seek insurance at 40 is to cover their spouse for the next 25 years, should an untimely death occur.
In the event of death between age 40 and retirement, the spouse would be missing out on critical income not only to pay bills, but to save up for the retirement nest egg. A person buying a 25 year term life insurance contract would be hedging the remaining working years until a social security benefit could be fully utilized.
25 Year Debts
As mentioned, matching a 25 year term life insurance policy to a debt lasting 25 years would also be a perfect fit.
While it’s difficult to project exactly how long all debts could last, given variable interest rates and inconsistent payments, quite a lot of student loans can take 25 years to pay back if they are sizable.
If a parent has co-signed on a student loan, it might be a very wise choice to own life insurance on the full amount of the graduated student, for as long as it may take to pay back the loans. Buying a 25 year term policy will keep the premiums level throughout the payback.
You might be thinking, well, won’t the loan amount be going down over this time period? Absolutely. In this case, you can contact the insurance company and lower the death benefit amount on the 25 year term life policy to match the most current amount. This not only lowers the required payments, but also still keeps those new payments level.
Getting Affordable 25 Year Term Life Insurance
25-year term insurance policies are not a popular product that a lot of insurance companies offer, but it’s important that you find an affordable plan to meet your needs. There are several ways that you can secure lower insurance premiums, regardless of the length of your term insurance policy. Making a few simple changes could save you thousands of dollars on your policy.
The first thing that you should do is cut out any cigarettes. If you’re listed as a smoker on your life insurance application, then you should expect to pay much higher premiums for your protection. In fact, smokers are going to pay around twice as much for life insurance versus what a non-smoker is going to pay for the same sized insurance plan. If you want to get the most affordable plan, you’ll need to kick those cigarettes to the curb once and for all.
The next thing that you should do is improve your overall health. Before the insurance company approves your application, they are going to require that you take a medical exam. The results of the exam are going to play a major role in how much you pay for life insurance. Getting better results is going to translate into lower insurance premiums.
The two easiest ways to get lower insurance rates is to start getting regular exercise and start a healthy diet. Both of these will help you lose weight, lower your cholesterol, and reduce your risk of being diagnosed with health complications. If you’re overweight, you could pay 50% for your life insurance coverage. Losing weight will save you hundreds and hundreds of dollars every year. Your doctor and your wallet will both thank you.
The best way to ensure that you’re getting affordable life insurance coverage is to work with an independent insurance agent. Unlike a traditional insurance agent, independent agents work with dozens of highly rated companies across the nation, which means that we can bring all of the lowest premiums directly to you.
Our independent insurance agents have years of experience working with all kinds of applicants with various insurance needs. We represent some of the most highly rated companies across the nation. Every insurance company is going to offer different rates based on their medical underwriting and rating system, which means that you could get drastically different rates depending on which company that you get the quote from. It’s vital that you get dozens of quotes before you decide which company is going to give you the best rates.
Instead of wasting hours and hours calling dozens of companies, let one of our independent insurance brokers do all of the hard work for you. It’s our mission to ensure that you’re getting the best life insurance rates for you.
If you have a situation which might require a 25 year term life insurance policy, please feel free to contact us and we’ll be happy to search through our 50+ carriers to find you the most affordable policy available.
You never know what’s going to happen tomorrow, which means that you shouldn’t wait any longer to get the insurance protection that your family deserves. If something tragic were to happen to you, then your family would be left with a massive amount of debt and other final expenses. Losing a loved one is never going to be easy, but being responsible for thousands of dollars is going to make the whole situation a thousand times worse.
If you have any questions about 25-year term life insurance or the other options available to you, please contact one of our agents today. We would be happy to answer those questions and ensure that you’re getting the best plan for you and your family.
Maybe you are needing insurance but concerned about qualifying due to a medical condition such as someone needing life insurance for overweight individuals; we can answer your questions and help you obtain the coverage you deserve. Call us today.