Term insurance is the most inexpensive life insurance policy you can buy. One of the chief advantages of term insurance is that it provides a great value in that you can buy a large amount of life insurance without having to commit large premiums. Thirty year level term is a popular variation of term life insurance because it offers extremely long term guarantees at affordable rates.
What is 30-year Level Term Insurance?
Thirty year level term insurance is a type of level term insurance that offers a fixed, guaranteed rate for the first 30 policy years. Your actual rate is based upon a number of underwriting criteria including your age and health, the amount of insurance and any smoking as well as hobbies or hazardous sports or avocations. Thirty year term is not as inexpensive as its 10-year, 15-year and 20-year level term counterparts as the guarantees are considerably longer.
How does 30-year Level Term Life Insurance Work?
A 30-year level term policy guarantees a fixed rate for a 30 year time period. However, you are not obligated to keep the policy for the full 30 years. You can drop coverage at any time simply by discontinuing premium payments. The real advantage is that the insurance company is “on the hook” for the level rate for the first 30 policy years. In other words, you can drop the coverage at any time without penalty but the insurance company must honor your guaranteed rate for the first thirty policy years.
At the end of the 30th policy year, your rate will increase significantly and most 30-year term policies are not continued beyond the initial level term period. Most all thirty year policies are renewable to age 95 and can be continued as long as the higher premiums are met. If your need for the protection exceeds 30 years, then term insurance is not likely your best choice. You may consider a lifetime guaranteed universal life policy or a whole life policy.
Features and Benefits of 30 Year Level Term Insurance
Most 30 year level term insurance policies have several valuable features and benefits including renewability and convertibility. Renewability means that even after the 30th policy year you can maintain the policy albeit at a higher rate. In other words, your coverage does not end after 30 years. You have the option to “renew” the policy if you continue to pay the higher premiums beyond the end of the 30th year. Most all term policies are renewable to age 95.
Convertibility refers to the ability to “exchange or convert” your policy, without proving your health, for a whole life, universal life or more permanent form of life insurance that will offer you a level rate for a longer period of time usually your lifetime. This “conversion option” is extremely valuable if you become sick or are uninsurable. With a convertible policy, even if you cannot qualify medically for life insurance anywhere else, you can always convert your policy without evidence of good health.
Finally, life insurance policy riders are available with most 30-year term plans. These additional policy options including children’s term insurance rider, waiver of premium rider and accidental death insurance may be available depending upon the life insurance company’s offerings.
Why Buy 30 Year Term Insurance?
There are many reasons to buy thirty year level term insurance but it is most effective longer term needs. The best example is mortgage protection. If you have a 30-year mortgage and want to protect your obligation in the event of death, a thirty year level term policy would be ideal.
Income protection is another reason to consider a 30-year level policy. Let’s say that you are 35 years old and you want to retire at 65. You can buy a 30-year term policy and effectively protect your human life value or your income earnings ability till retirement.
If you are under the age of 45, a 30-year term plan may be the best choice. Even though premiums are higher having a term policy “locked-in” at a guaranteed rate for 30 years is a great idea. As your needs change you can supplement by adding other term plans but a base plan for 30 years is a sound financial move.
Thirty year term life insurance is a very popular form of level term insurance because of its long term guarantees. Thirty year term plans provide a great foundation for anyone under the age of 45 and provide great flexibility and can cover many different types of needs. For more information, click the following link to get a quick 30-year level term life insurance quote, or please contact MEG Financial toll free at 877-583-3955.