The short answer
Life insurance for 20 year term isn't a separate product. It's a term life policy, and for 20 year term the difference is mainly how carriers review the application and set the rate. Rules vary by carrier, so comparing several through an independent agent is the simplest way to find a good fit.
This guide answers the most common questions about how to buy life insurance for 20 year term.
There are two main kinds of life insurance: term and permanent. Whole life is the most familiar permanent kind.
Here is a clear comparison of term vs whole life insurance so you can pick the right fit.
Part of our complete guide: Term Life Insurance: The Complete Guide.
Quick answer
Term: lower cost, set length, no cash value. Whole life: lifelong coverage and cash value, higher cost. Convertible term keeps the door open to permanent coverage later.
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On this page
- How to apply as 20 year term
- Getting your application ready
- How much life insurance do 20 year term need?
- Difference between term and whole life: should you buy term or whole life?
- How term life insurance works
- Can you change term into whole life?
- What affects the cost of term life insurance?
- What if you miss a payment?
- Do you need a medical exam?
- Is term life right for you?
- Frequently asked questions
How to apply as 20 year term
- Decide how much coverage you want and for how long.
- Compare several carriers with an independent agent; underwriting rules differ more than most people expect.
- Answer every application question honestly and completely.
- Review the policy when it arrives. Every state gives you a free-look period to cancel for a refund.
Getting your application ready
- List medications and doctors.
- Answer every question completely.
- Compare several carriers' no-exam limits.
Compare rates from several carriers in about two minutes. Free, no obligation.
How much life insurance do 20 year term need?
Add up debts, the mortgage, the years of income your family would need and future costs like school, then subtract savings and any coverage you already have.
It's fine to start smaller and add coverage later if your budget changes, as long as your health still qualifies.
Difference between term and whole life: should you buy term or whole life?
| Feature | Term life | Whole life |
|---|---|---|
| How long it lasts | A set term, like 20 years | Your whole life, if premiums are paid |
| Cash value | None | Builds over time |
| Cost for the same amount | Lower | Higher |
| Best for | Needs with an end date | Lifelong needs and planning |
Many families buy term for big, temporary needs, such as the mortgage and raising children, and a smaller whole life policy for lasting goals like final costs or leaving a legacy.
How term life insurance works
Term life insurance covers you for a set number of years, such as 10, 20 or 30. If you pass away during the term, the policy pays a death benefit to your beneficiaries. If you outlive the term, the coverage ends and nothing is paid.
Because it does not build cash value, term is usually the most affordable way to buy a large amount of coverage. It fits needs that have an end date: a mortgage, raising children or replacing income until retirement.
How to get covered in 3 steps
- Check your rate. Pick your state and answer a few quick questions about the coverage you want.
- Compare carriers. A licensed agent compares term life insurance options from several insurers and explains the trade-offs.
- Apply and get covered. Many applications take one phone call. Coverage starts once the policy is issued and the first premium is paid.
Can you change term into whole life?
Conversion is a quiet but powerful feature. Your health could change in ways that make new coverage hard to get. A conversion option lets you keep coverage for life anyway.
When you shop for term, compare conversion rules, not only the price.
What affects the cost of term life insurance?
Term life pricing comes down to risk and time. Your age, health and habits describe the risk. The amount and term describe how much and how long the insurer is on the hook.
Two practical tips: buy when you are younger, and compare carriers. Insurers judge the same health history differently, and that can move your rate class.
What if you miss a payment?
Life insurance only works if it is in force when it is needed. Premiums can usually be paid monthly, quarterly or yearly. Paying yearly can cost a little less overall.
If you miss a payment, most policies have a grace period, often about a month, when coverage continues. After that the policy can lapse. Some policies can be reinstated within a set time, but the insurer may ask new health questions.
Tip: Automatic payments from a checking account are the simplest way to avoid a lapse.
Do you need a medical exam?
Many carriers now offer policies that can be approved without a medical exam. Instead of needles and a nurse visit, the insurer uses your answers, prescription history and other records.
- Faster. Decisions can come in days, sometimes the same day.
- Easier. No appointment and no lab work.
- Trade-offs. No-exam policies may cap the coverage amount, and some cost more than fully underwritten policies for healthy people.
Whether you qualify for a no-exam decision depends on your age, health history and the amount you want. Some applicants are moved to an exam partway through. An agent can tell you which carriers are likely to approve you without one.
Is term life right for you?
Often a good fit
- you have a need with an end date and want the most coverage for the money.
- you want to cover a mortgage, income or debts.
Maybe not the right fit
- you want coverage that never expires.
- you want a policy that builds cash value.