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What is the longest life insurance term I can buy?

Do you prefer to learn by watching? We answer this question in a video below. Click here to jump ahead.

Term life insurance is affordable life insurance coverage designed to provide financial protection for temporary needs. Term life insurance only lasts a set period of years. Your options often ranged from 10 to 35 years—until now.

Legal & General America (also known as Banner Life) just released a 40-year term product. This is a great opportunity for individuals who would like affordable financial protection for their families well into their retirement years. Let’s take a look at some important details about this new product.

Things to Know About the 40-Year Term Policy

  • If you are a non-smoker, the 40-year term option is available to people age 45 and younger.
  • If you use tobacco, the 40-year term option is available to people age 40 and younger.
  • Banner’s 40-year term product (and their new 35-year term product) is not available if you live in New York.

» Compare: Get your 40-year term quote

The Benefits of a 40-Year Term Policy

Americans are living longer and working longer in order to meet financial needs. In today’s economy, many Americans carry debt even into their retirement years. A 40-year term policy allows you to protect your loved ones longer.

Overall, Millennials, born roughly between 1981 and 1996, have been hesitant about buying life insurance. They would prefer a sure thing, which term life insurance is not since it’s temporary, but cannot afford permanent life insurance. A 40-year term policy is a great compromise. It’s much more affordable than permanent insurance and because it lasts quite a while, Millennials can provide financial protection for their loved ones well into their 60s and 70s.

Until now, if you had long-term life insurance needs you had essentially two options before you:

  1. Buy a permanent life insurance policy to make sure you had coverage your entire life.
  2. Buy a 10-30 year term policy and then later on simply buy another term policy if your protection needs continued.

Each option has its pros and cons. With option A, you have coverage your entire life, access to cash values, and possibly dividends, but you’re paying substantially high premiums each month. With option B, you have affordable coverage but if you need to buy another policy later on, the term life insurance may not be so affordable any more if you’re facing new health issues—not to mention you have aged.

Enter the 40-year term policy. A 40-year term option may not be permanent, but for the budget-conscious buyer, it can make a huge difference to both you and your family.

Having term coverage protects your family from financial devastation if you were to die unexpectedly during your prime earning years. However, a 40-year term policy can even protect your loved ones into your retirement years.

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How Much Does a 40-Year Term Policy Cost?

The longer your term length, the higher your premiums—but these monthly costs are much more affordable than whole life insurance. And peace of mind to you and your loved ones is priceless. The table below illustrates some examples of how much a 40-year term policy from Banner may cost you.

Estimated Monthly Premiums for a $500,000
40-Year Term Policy for a Healthy Non-Smoker
AgeMaleFemale
25$42.80$33.98
30$52.18$38.48
35$64.49$52.74
40$114.14$91.26
45$188.99$145.15

According to the CDC, the average life expectancy in the United States is 78.6 years. A 40-year term policy evens the odds a bit. Term life insurance is designed to protect against the what-ifs in life. Having term coverage protects your family from financial devastation if you were to die unexpectedly during your prime earning years. However, a 40-year term policy can even protect your loved ones into your retirement years.

» Calculate: Life insurance needs calculator

If you’re age 45 and younger, easily find out how much a 40-year term policy may cost you. Simply run a quote and slide the arrow up to 40 years.

Image of a term life insurance quote for $500,000 in coverage, 40 year term, and $38 per month.
If you’re older than 45, there are 35-year term policies available until age 50. And, don’t worry, the 10-30 year terms haven’t gone anywhere. Many life insurance companies offer policies ranging from 10-30 years and your Quotacy agent can help you find a policy that works with your budget.

As an independent broker, Quotacy has access to products from multiple top-rated life insurance companies. Because we work for you and not any particular insurance company, we are dedicated in helping you find the best policy for your family’s needs.

Watch the What Is the Longest Term I Can Buy? Video

Video Transcript

Welcome to Quotacy’s Q&A Friday where we answer your life insurance questions. Quotacy is an online life insurance agency where you can get life insurance on your terms.

I’m Jeanna and I’m Natasha.

Today’s question is:

What is the longest term life insurance policy I can buy?

 
 
I know most people probably don’t find life insurance very exciting; however, the answer to this question is because until very recently, a 35-year term was the longest term policy option. And, actually, very few companies even offer this.

Your age determines how long of a term you can buy. But if you’re under the age of 45, you now have a 40-year term option. This is a great opportunity for individuals who would like affordable financial protection for their families even into their retirement years.

In today’s society, Americans are living longer and working longer in order to meet financial needs. And many Americans are even carrying debt into their retirement years.

The new 40-year term option can provide a longer duration of financial protection at a more affordable price than a permanent life insurance policy. The new 40-year term policy can also be ideal for Millennials.

Millennials, in general, are skeptical of buying term life insurance. The 2008 market crash made the majority of us cautious of the financial industry as a whole.

Millennials don’t like to gamble with their hard earned money. They are more comfortable with a sure thing, and term life insurance is not. It pays your loved ones if you die not when you die.

But, if you have a family, life insurance protection is essential. Your family can’t afford to risk you not having this financial protection. And while some permanent life insurance products like whole life insurance come with a guaranteed death benefit payout, it’s quite expensive.

The new 40-year term policy option is a great compromise for our Millennial generation.

It’s much more affordable than permanent life insurance and because it lasts quite a while Millennials can provide financial protection for their loved ones well into their 60s and 70s. A 45-year-old can have term insurance protection to age 85!

Until now, if you had long-term life insurance needs you essentially had two options: Buy a permanent life insurance policy to make sure you had coverage your entire life or buy a 10-30 year term policy and then later on simply buy another term policy if your protection needs continued.

Two options for long-term coverage:

A: Buy a permanent life insurance policy to make sure you have coverage your entire life.
B: Buy a 10-30 year term life insurance policy and then later on simply buy another term policy if you need it.

 
 
Each option has its pros and cons.

With option A, you have coverage your entire life, access to cash values, and possibly dividends, but you’re paying substantially high premiums each month.

With option B, you have affordable coverage but if you need to buy another policy later on, term life insurance may not be so affordable anymore especially if you’re facing new health issues and not to mention that you’ve aged.

Now with there being a 40-year term option, you don’t have to choose between length of protection or affordability. You can have both.

According to the CDC, the average life expectancy in the United States is 78.6 years. And, again, a term life insurance policy only pays a death benefit if you die within your term length. A 40-year term policy evens the odds out a bit.

Term life insurance is designed to protect against the what-ifs in life. Having term coverage protects your family from financial devastation if you were to die unexpectedly during your prime earning years. And a 40-year term policy can even protect your loved ones into your retirement years.

Earlier I mentioned that this new 40-year term policy is only available for those that are 45 or younger. Let’s discuss a few more details about this policy.

If you don’t use tobacco, Jeanna’s right, you have the option to apply for a 40-year term policy until age 45. But if you do use tobacco, that maximum age drops to 40 years old. Banner Life is currently the only life insurance company that offers this 40-year term policy*.

You can easily apply for this policy through the Quotacy website. Put in your basic information and simply slide the arrow all the way to the right to see your quote and then apply.

» Compare: Term life insurance quotes

So, if you’re looking for life insurance coverage, you have some options. Term length options now run from 10 to 40 years. So whether you’re 25 years old or 75 years old, we can help you buy life insurance.

If you have any questions about life insurance, make sure to leave us a comment. Otherwise, tune in next week when we answer the question What age should I buy life insurance? Bye!

*Banner Life does not offer their 40-year term product in the state of New York.

About the writer

Headshot of Natasha Cornelius, a life insurance writer, for Quotacy, Inc.

Natasha Cornelius

Writer, Editor, and Co-Host of Quotacy’s Q&A Friday YouTube Series

Natasha writes and edits content and is co-host of Quotacy’s YouTube series. She is also working toward her Chartered Life Underwriter (CLU) designation. When not working or studying, you’ll find her throwing a tennis ball for her pitbull mix, Emmett, or curled up on her couch watching Netflix. If it’s football season, the Packers game will be on.