People normally buy term life insurance because they want to ensure all of their debts and final expenses are covered when it is their time to go. A term life insurance policy will provide uninterrupted coverage for the duration of the policy as long as all of the premiums have been paid in full and on time. For a 30-year term life insurance policy, the policy will continue to mature over the course of those 30 years. It is one of the simplest insurance policies to understand and maintain for long periods of time.
Simple and Easy to Understand
Because 30-year policies are for an extended period of time, individuals over the age of 50 aren’t eligible to purchase them. 50-year-olds, however, do qualify for 20 or 25-year term life policies. 30-year term life policies are fairly basic and don’t offer a lot in the way of frills or extras. 30-year policies are normally considered for individuals who want to provide financial support for their spouses once they pass away. Your agent will perform a “needs analysis” to determine just how much will be needed in terms of a sufficient death benefit.
What Can a 30 Year Policy Pay For
30-year policies can provide a death benefit payout that will cover final expenses as well as any unpaid debts. Unpaid debts can include car loans, the mortgage on the house, credit card debt, and student loans. There will also be enough money left over to take care of a child that may need long-term care, which sometimes lasts into adulthood. The policy will also be used to provide a steady income that replaces what was lost when the insured passed away.
There Are Cons to Consider
30-year term life policies are very basic because nothing changes. If you purchase a level term policy, nothing will ever change. The death benefit will remain the same throughout the term, and the premiums will never go up or down. A term policy doesn’t maintain a cash value. If you forfeit your premiums and let the policy lapse, you won’t get any money back. The same is true if you let your policy expire. If you choose to renew your policy, the premiums may increase if your health has changed. Pre-existing conditions may also be an issue.
While dealing with term life policies, it is best to work with an agent. The agents at Unisource Insurance Associates have the knowledge and experience you can rely on to build a policy that will take care of your loved ones and their needs if something happens to you. Call and schedule a consultation today and get the answers you are looking for. Don’t wait until it’s too late. Get your answers now so that you can start preparing for the future.