20 Year Term Life Insurance

See Rates, Common Buyer's Mistakes, & Instant Quotes!

Updated: March 2024

Today, you’re going to learn all about 20-year term life insurance.

Whether you need help deciding what term length to get for your life insurance coverage, or if you’re still trying to figure out if life insurance is right for you, this article will help.

There are many different types of life insurance available: 10-year, 20-year, 30-year or even up to a 40-year term, whole life insurance, and more.

A 20 year term life insurance plan is most commonly used when you have young children to protect them all the way through college age. Although there are many other uses you will learn more about below.

Let’s begin our journey to find out if a 20yr term makes sense for you and your family.

20 Year Term Life Insurance

Many people who are between 20 and 30 seem to overlook getting life insurance, believing it’s not necessary at this particular time in their lives. Many believe due to great health and living in a lower income bracket, they can ignore buying life insurance. However, in reality, it doesn’t matter how old you are, if you were in a fatal accident, the loss of your income will affect those in your life.

There are several different life insurance policies but if you are in your 20s and 30s, you might want to learn more about a 20-year term life insurance plan which will cover you for 20 years and the payout will remain the same. Should something happen to you, your beneficiary will get the full amount of the policy.

What is 20 Year Term Life Insurance?

20-year term life insurance is a type of life insurance that will cover you for 20 years. It is a level term policy, meaning the premiums that you pay and the coverage amount (death benefit) does not change during the 20 years.

A 20-year term life insurance policy type is typically a good choice for younger people because it’s a great deal and cheaper than whole life insurance or universal life insurance. The downside is, should you outlive the term of the policy, you will not get anything when the term ends.

About Term Life Insurance

Here are a few characteristics of term life insurance policies that you should know before purchasing life insurance.

  • Typically term life insurance is the least expensive when you buy compared to other life insurance options.
  • It is guaranteed to have the same coverage amount for the life of the policy.
  • Policy terms vary in length from 10-year term life insurance up to 30-year term life insurance, in 5-year increments (i.e. 20 year level term).

It will give you what you are looking for to protect your loved ones if you pass away. You do not have to deal with policies that have all the bells and whistles but will cover your children from the time they are born until they graduate from high school.

The downside to this policy, when the term ends, you will be paying more for the premium because you are older. The good news is if you are under 45 you will more than likely get a very cheap rate compared to a permanent life policy!

Who is a 20-Year Level Term Life Insurance Policy Best For?

Family with 20 Year Level Term Life Insurance

This is a great plan for adults who want extra coverage and the easiest way to provide financial help to your family should something happen to you.

Adding to this, if you are married and have children depending on you to provide for them financially over the next 15-20 years, then a 20-year term policy is a great choice for your financial protection. If you purchase a 20-year life insurance policy, you will protect your family over the next 20 years should you pass away before the term ends.

An Example of Someone Who Might Buy a 20-Year Term Policy

Assume you are 30-years-of-age and have 2 children. 20 years from now you will be 50 and your children will be in their 20s. Also, by the time you reach 50, you should be in a more financially stable situation compared to your 20s & 30s. Possibly your home mortgage is paid off, you have invested wisely, and are relatively out of debt.

By the time you are 52, your kids will probably be out the house and on their own and you have built a nice nest egg. Should you pass away, your spouse will be able to live off your savings and investments. The bottom line, the more financially secure you become, the less likely you will need insurance.

Deciding if a 20 Year Term Plan is Right for You

There are many life insurance types that make shopping a bit overwhelming. Even term life has so many options to choose from. There are several things you should consider before purchasing a 20-year life insurance policy. You should know that a 20-year policy does not increase in value over time as the value is set at the time you purchased it and those coverage amount never change.

That said, once the policy ends after 20 years, if you renew it, instead of choosing a different or new plan, it will be more expensive. Also, if you are younger, you might want to consider a policy that will last longer such as a 30-year term life insurance coverage or a permanent life plan. These plans will ensure the policy will stay in place at a set cost until your children have grown and moved out of your home.

When considering 20-year term life insurance companies you want to ensure you get as much coverage as possible for your family. You also want to make sure the level premiums are affordable, so know ahead of time how much money your family will need if you pass away.

Obviously, the more money needed the higher the premium will be, so make sure you will be able to make the payments. You should shop around and comparison shop for different policies and have a clear understanding of what your financial situation is at this time. If you use an independent agent to shop around, they will help you find the right insurance to suit your needs and those of your family.

Once you have purchased the right policy for you, sit down and decide who will receive the money after you pass away, this person is referred to as the beneficiary. If you are married, your spouse is usually the most logical choice. If you have children but not married, your children would become the beneficiaries in most cases. You can also opt to list your beneficiaries if you have several children to ensure the money will be evenly divided between them.

Sample 20 Year Term Life Insurance Rates

Below are sample rates for 20-year level term life insurance companies. Keep in mind that policy premiums can vary based on health, smoking, and other factors as well.

These sample monthly rates are for non-smokers with no health issues, and for a coverage amount of $500,000.


To find out what rates you could get for $500,000 or a different coverage amount, click on our Compare Quotes tool above.

Mistakes You Should Avoid When Buying Term Life Insurance

Here are two mistakes to avoid when purchasing term life insurance.

Mistake #1: Choosing a Low Coverage Amount

Married Couple Buying Term Life Insurance

You decide to purchase a policy that has very little coverage such as an insurance plan through your employer. If you are the main source of your family’s income, you will be lucky if you get even one year’s worth of your kid’s college tuition and certainly not enough for your family to live on. Getting appropriate life insurance coverage will allow your family to live comfortably after you have passed away.

You should consider getting coverage for both yourself and your spouse. Even if your spouse is not employed, they are taking care of the household and children while you are at work and they should be covered as well. If your spouse passes away, your children are going to go through many difficulties. You might have to hire someone to take care of your children and everyday household duties, including preparing meals. You might even have to cut back your hours at work to take care of your kids.

Mistake #2: Buying a Short Term Policy Because It’s Cheaper

Rates for a 10-year term will be less compared to rates for 30 years or the 20-year term life insurance policy. To save money, you decide to purchase a much shorter term life insurance policy but that can be a really bad idea since it is such a short policy length.

It is highly recommended you get a minimum 20 to 30-year term life insurance policy. These policies are a great middle ground policy as they are not too short nor too long.

Some people will choose to get a 10-year term life insurance policy but consider what would happen if you developed medical issues over the next 10 years. You might not be able to get a new policy for your whole life or it will cost you an arm and a leg! Shorter-term life insurance policies have there place in certain situations but are often just a really bad choice for the majority of situations since most people live longer.

Whether choosing a 20, 25 or 30-year term life policy will depend on your situation. You should purchase a policy based on when your children will be heading off to college and living on their own. If you do not have children but plan on it in the future, you should purchase a 30-year policy. If your children are around 5 years of age, a 20-year policy is your best bet.

20 Year Term Life Insurance Post COVID-19

  • It is still possible to lock in a 20 year level term even in a post COVID-19 pandemic world.
  • Some carriers have tightened up on underwriting guidelines for people with underlying pre-existing conditions that could create more risk while having COVID-19.
  • Using an independent agent like Bennett Bier at Spectrum Insurance Group is more important than ever to find the best approval.
  • We still have options with a medical exam and without a medical exam required.

How to Apply for 20 Year Term Life Insurance

You must shop around to find the answer because no single policy fits everyone’s needs.

Both term life and whole life with level premiums provide the right coverage for different buyers. If you need a policy that is not expensive for approximately 20 years and want to make sure your children will be protected, then term life is the best choice. If you want an investment component and coverage your whole life insurance policy and coverage for your entire life, whole life insurance is probably the best choice for you.

Luckily, we’ve done all the research for you and can help you decide on policy types, policy amounts and apply online!

Fill out the form on this page, and call one of our experienced independent life insurance agents to find out what policies are best for your situation. We work with all the top life insurance companies and can help you decide if a 20 year term life or another type of policy is best, all for free.