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20 year, 30 year and 40 year Long Term Life Insurance Protects Many Interests

By Mike Heuer

When buying life insurance, many insurance agents and brokers like to get people to buy whole life products that provide an average 2.5 percent return over the life of the contract, according to the National Association of Insurance Commissioners. But what the insurance producers often don’t mention is that long term life insurance policies can provide a great deal of protection for much less money – particularly the younger the named insured is when buying the policy.

Because they can protect temporary financial obligations for a set period and then expire, long term life insurance policies, such as 20 year term life insurance, are very popular. One of the biggest reasons they have proven so popular is due to the fact they can cover a wide range of possible financial obligations for a small monthly sum if the person whose life is insured dies while the policy is in effect.

They are particularly useful for young families in their 20s and 30s who are beginning to have children and want the assurance of a term life plan in case the primary earner should die. In such an instance, a 20 year term life insurance plan can provide enough money to ensure the cost will be covered for raising children until they are adults. Upon reaching adulthood, it generally is considered that the former children will be able to provide for themselves and no longer depend on parental support.

And those who are middle-aged and even a little older can find great use of 20 year term policies to help protect home mortgages and ensure children’s college tuitions will be coverage if the unthinkable might happen and the named insured does not live long enough to continue as the family’s primary provider of income. Thankfully, term life plans are very affordable, particularly compared to whole life plans.

A 30 year term life plan is in effect for 30 years and then expires if the person whose life is insured outlives the period for which life insurance is provided. As stated, protecting a home mortgage is the most common use of a term life plan that lasts for 30 years. Another common use is to provide life insurance coverage while raising a family and putting children through college, which easily could span 30 years.

Another use of a 30 year term life insurance plan is to protect a business interest in case its principal owner should die while coverage is in effect and money is needed to help either keep the business going or to provide time to liquidate business assets.

A 40 year term life insurance policy also is good for protecting a long term mortgage as well as providing life insurance protection up to retirement years for people in their 20s. Because of the long duration of 40 year term life insurance, the premiums will be a bit higher than their slightly shorter counterparts. But they are excellent ways to buy long-term insurance protection while also investing in high yield vehicles to create a retirement nest egg.