The 30-year term life insurance is an insurance policy that provides its users with life insurance coverage for 30 years. However, it requires you to pay your premiums periodically to make good use of its benefits.
This insurance coverage spans 30 years. For this reason, most insurance companies do not issue the policy to applicants above age 50. Fortunately, this group of applicants can simply buy either of the 20-or 25-year term variants.
Term life insurance policies are very affordable, with coverage of up to $5 million. Furthermore, they enable you to convert your 30-year term life insurance plan to permanent insurance without having to undergo medical underwriting.
Moreover, your periodic premium will remain the same over the 30-year term.
How Does It Work?
The 30-year term life insurance policy is perhaps the simplest form of life insurance. This is because its fees are nominal. Also, it does not involve any cash component. The moment this policy is issued, all you have to do is pay your periodic premium, whether monthly, quarterly or annually. However, if you die before the 30-year term elapses, your beneficiary will receive the tax-free death benefit as a lump sum.
Take note that this insurance policy contains three basic guarantees:
- Paying your premiums keeps your insurance coverage valid for the entire 30-year period
- The insurance company cannot increase your premium during the period
- Your beneficiary is guaranteed the death benefit for the entire 30-year period
The Pros and Cons of 30-year Term Life Insurance
The pros and cons of the 30-year term life insurance policy depend on your reason for purchasing it. Simply put, the type of life insurance plan you purchase is determined by what you need the policy for.
Below are some of the pros and cons of the 30-year term life insurance.
Pros
- Term life insurance is the least expensive of all policies
- It can be converted into permanent insurance without additional medical underwriting
- Applicants can get coverage by paying for one month alone
Cons
- Term life insurance is temporary, although it can be renewed
- It has no cash value. That is, canceling it or letting it expire will not result in any payment for you
- It is not flexible. That is, the periodic premiums and death benefit cannot be changed once the policy is issued
Should I Buy a 30-year Term Life Insurance?
It is important to note that your reason for purchasing this policy determines whether it is perfect for you or not. For instance, most insurance holders buy this policy to replace their missing income. This is to enable their surviving loved ones to continue to thrive without encountering any financial hardship after their demise.
Some other reasons why people buy this policy are:
- To pay off the mortgage
- To pay off debts
- To set aside enough money to care for a special-needs child
Remember that you can’t apply for this insurance policy if you are aged 50 and above. As such, endeavor to start early. At Randy Jones Insurance, we can help you get the best personal insurance plans. Contact us now to get started!
