Term life insurance can offer financial protection for you and your loved ones, with rates that are guaranteed not to change for a set term. If you’re looking for a longer policy, you might consider 30-year term life insurance. You’ll have coverage for three decades, even if you experience health changes after purchasing the policy.
What Is 30-Year Term Life Insurance?
A 30-year term life insurance policy offers coverage over a period of 30 years with a guaranteed cost. You pay the same amount to own the policy each month, and if you die before the 30-year term ends, the policy pays out a death benefit to your beneficiaries.
There is no cash value component in a 30-year term life insurance policy the way there is with certain types of permanent life insurance. However, term life insurance is less expensive than permanent coverage.
How Does a 30-Year Term Life Insurance Policy Work?
Term life insurance is intended to cover you for a set term. During that time, you pay level premiums that do not change. If you pass away while coverage is in-force, your beneficiaries receive the death benefit prescribed by the policy. If you don’t pass away, the policy will expire at the end of the term, but you may have the option to renew at a much higher rate.
When you purchase a 30-year life insurance policy, you’ll need to decide two things:
- How much coverage you want to have
- Who should receive the payout
It’s possible to name just one life insurance beneficiary or multiple beneficiaries for a term life policy. If a death benefit is paid out, your beneficiaries can use it for whatever they want: to cover funeral or burial expenses, day-to-day living expenses, tuition or mortgage debt.
When buying life insurance, 30 years might seem like a long time to keep the policy in place. But it may be reassuring to you and your loved ones to know that the policy will be there should it be needed during that time frame.
What happens after 30 years?
At the end of the 30-year level term, your life insurance policy expires if you don’t renew it. (Not all life insurance companies offer a renewal option.) No further premiums need to be paid, and your beneficiaries will no longer be able to collect a death benefit if you have outlived the policy.
Can a term life policy be extended?
A 30-year term life insurance policy can often be extended beyond the initial term if you’d like to maintain your coverage. However, extending a life insurance 30-year term policy will raise your premiums significantly. And your life insurance rates will continue to rise each year you renew. The high cost of renewing a term life insurance policy after 30 years doesn’t make financial sense for more people.
Rather than extending a 30-year term life insurance policy, you may have the option to convert it to permanent life insurance instead. With a permanent life insurance policy, you’re covered as long as premiums are paid. Permanent policies can also accumulate cash value.
Converting term life to permanent life insurance will also result in higher premiums. Understanding your life insurance coverage needs can help you to decide which type of policy is more appropriate for your situation and budget.
Who Is 30-Year Term Life Insurance For?
A 30-year term life insurance policy can make sense in many situations.
For example, if you’re married with young children then you might want to have a 30-year life insurance policy to help your beneficiaries with things like:
- Paying off the mortgage
- Funding retirement for your surviving spouse
- Helping children with higher education expenses
- Covering basic living expenses
- Clearing credit cards, medical bills or other debts
Experiencing certain life events can affect your life insurance needs. Getting married and having kids, for example, might necessitate purchasing a longer life insurance policy if you want to ensure that your family would be taken care of if something should happen to you.
How Much Does a 30-Year Term Life Insurance Policy Cost?
The average cost of a 30-year term life insurance policy is $336 a year for $500,000 in coverage for a 30-year-old female, based on Forbes Advisor’s analysis of life insurance rates.
The amount you’ll pay for life insurance will usually depend on several factors, including your age, gender, health and smoking status, along with other factors. Here are the average life insurance rates for a 30-year term life insurance policy for different ages, genders and coverage options.
Average 30-year term life insurance rates per year
Average Term Life Insurance Rates by Payout Amount
Knowing how much life insurance you need is important. As the amount of the death benefit rises, so will your cost of 30-year term life insurance. We analyzed average annual rates for 30-year term life insurance for 30-year-olds, with policy payouts from $100,000 up to $3 million.
30-year term life insurance annual rates
Which Companies Have the Lowest 30-Year Term Rates?
Here are examples of annual 30-year term life insurance rates from some of the cheapest life insurance companies in our rating.
Cheap 30-year term life insurance for men ages 30-50
Cheap 30-year term life insurance rates for women ages 30-50
Your age at the time you purchase life insurance influences what you’ll pay. Life insurance quotes will increase as you get older and as your health status changes. Buying life insurance when you’re young allows you to lock in low rates.
For that reason, it’s important to select the appropriate term for life insurance from the outset. This will help you avoid paying higher premiums to renew or buy another policy later.
Is a 30-Year Term Life Policy Worth It?
30-year term life insurance may be worth it to you if you’re interested in a lengthier coverage term and want to lock in level premiums while you’re young and healthy.
It’s important to consider what happens when the 30-year term draws to a close. If you believe you’ll need life insurance past that point, you may benefit more from purchasing permanent life insurance instead, which can cover you for life.
