20-Year term life insurance plans are one of the most popular policies issued by major carriers. These types of policies provide stable and affordable protection. Most companies guarantee that the premium will remain level for 20 years and the death benefit will not reduce during that time.
Coverage is ideal for individuals, families or businesses that wish to provide a large amount of death benefit at a reasonably low cost.
What is Term Life Insurance?
Term life insurance is the least expensive type of life insurance. Coverage is provided for a specific period of time (Usually 5, 10, 15, 20, 25 or 30 years). Premiums are generally extremely affordable, allowing for the purchase of large amounts of coverage at low rates. Common uses include covering financial responsibilities of the insured in case of a death.
Key Man (Person) life insurance is a policy written on the owner of a small or large business. Affordable rates on high face amounts of coverage are available from many top-rated companies. Typically, a buy-sell policy is written on someone who is considered irreplaceable, and is closely involved in running the day-to-day operations. A financial hardship would result if that person died or left the company.
Most companies or small businesses have at least one employee who is crucial to the success of the business. That person can be the best salesperson, the owner, a partner or someone who controls the day-to-day operations. But the loss or death of that person could cause the company irreparable damage and possibly force bankruptcy.
Term life insurance the most popular form of life coverage purchased in the US. But what makes it so popular and why do so many people buy it? Perhaps price is the main reason. It is not just less expensive than a traditional whole-life policy. It’s substantially less expensive. Often, the difference in premium is thousands of dollars per year, and tens of thousands of dollars over your lifetime.
To accurately calculate how much life insurance you need, first we need to determine if you actually need any coverage. Life insurance protects the persons that depend on your income if you die prematurely. It also can provide a continuous income to family members to pay for ongoing expenses and other legal medical and funeral costs.
If you have dependents or your current debts are higher than your assets, you probably need to purchase coverage. Your current health will help determine what rates and options you are eligible for. Choosing the correct face amount will depend on four factors: