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 whole life insurance 20 year term.
A new baby changes everything, including your family's finances. Term life insurance is the simplest way to make sure the plan holds if an income stops.
Here is a practical guide for parents.
Part of our complete guide: Term Life Insurance: The Complete Guide.
Quick answer
Cover both parents, including a stay-at-home parent. Choose a term that lasts until the youngest is on their own. Use a trust or custodian for minor beneficiaries.
MarketView Agency is an independent insurance agency (National Producer Number 18345705).
On this page
- Is life insurance a good fit for 20 year term?
- Getting your application ready
- Life insurance for a growing family: how much life insurance do 20 year term need?
- How much term life parents need
- Why both parents need coverage
- How much coverage do you need?
- Why work with an independent agency
- Do you need a medical exam?
- Matching the term to the need
- Is term life right for you?
- Frequently asked questions
Is life insurance a good fit for 20 year term?
It can be, when there's a clear need: someone who depends on you, a debt or cost you don't want to leave behind, or a goal the policy is designed for.
- Often a good fit: 20 year term who want coverage they understand and can keep paying.
- Often a good fit: anyone who wants to compare several carriers before choosing.
- Maybe not: if existing coverage already meets the need.
- Maybe not: if the premium would strain your budget; a smaller amount may fit better.
We cover this in detail in Life Insurance for 30 Year Term: What to Know.
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.
Life insurance for a growing family: 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.
How much term life parents need
For parents, term life insurance answers one question: if my income stopped, how would my family keep going? The policy can pay the mortgage, daily costs, child care and future school costs.
- Cover both parents, including a stay-at-home parent. Replacing child care and household work costs real money.
- Pick a term that lasts until the youngest child is on their own.
- Name a trust or custodian for minor children rather than naming them directly.
Why both parents need coverage
A stay-at-home parent may not earn a paycheck, but replacing what they do costs real money: child care, school runs, meals, and the time the working parent would need to take off.
Many couples buy a policy on each parent with the same term. The amount for a stay-at-home parent is often smaller, sized to years of child care and household help until the children are older.
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.
How much coverage do you need?
A simple way to size coverage is to add up what your family would need to pay off or replace. Some agents call this the DIME method:
- Debt. Car loans, credit cards and other balances.
- Income. Years of income your family would need to replace.
- Mortgage. The balance on your home loan.
- Education. Future school costs for your children.
Subtract savings and any coverage you already have, such as a group policy through work. What is left is a reasonable target. You do not have to cover everything with one policy, and it is fine to start with the most important need.
Why work with an independent agency
We are an independent agency, which means we are not tied to one insurer. We compare plans from several carriers and help you pick the one that fits.
- More choices. Several carriers, not one.
- Help with health history. Some carriers view certain conditions more favorably than others.
- No added cost. Premiums are set by the carrier, not the agent.
- No pressure. If a policy is not a fit, we will say so.
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.
Matching the term to the need
The right term ends when the need ends. This table shows common pairings.
| Term | Often used for | Things to weigh |
|---|---|---|
| 10 years | A short loan or a gap until savings catch up | Renewal later costs more |
| 20 years | Raising older children, a shorter mortgage | A popular middle ground |
| 30 years | A new 30-year mortgage, young children | Higher price, longest protection |
| Two policies | Needs that end at different times | Laddering can lower total cost |
Is term life right for you?
Often a good fit
- Parents with children at home. Homeowners with a mortgage. Anyone whose income supports others. People who want a lot of coverage at a lower price.
Maybe not the right fit
- People who need coverage for life, such as for final costs or estate planning. People who want cash value they can use later. In those cases, permanent coverage may fit better.