20-year term life insurance is a type of coverage with a duration of 20 years. During this time period — called the “term” of your policy — you’ll pay premiums in exchange for life insurance coverage. If you die during the 20 years your policy is active, your loved ones can file a claim for a tax-free sum of money called the death benefit.
What is a 20-year term life insurance policy?
20-year term life insurance is a type of term policy that lasts for 20 years from the time you make your first payment. All term life insurance policies last for a set period of time before expiring.
Term life insurance is meant to offer you financial protection during the period of your life when you need it the most — like when you’re saving for retirement, raising children, or paying down a mortgage.
How does 20-year term life insurance work?
When you first apply for your policy, you’ll select your coverage amount, insurer, and term length — in this case, you’d select 20 years.
You’ll go through the application process the same way you would for any other term life insurance policy.
Once your insurer approves you for coverage, you’ll pay your first premium.
You’ll continue paying premiums in exchange for your coverage — this keeps your policy active.
Many 20-year term life policies have level premiums, which means your payments will stay the same for the entire length of your policy.
At the end of 20 years, your policy will simply expire. At this point, you won’t be covered anymore.
Who needs a 20-year term life policy?
You might need a 20-year term if you’re early on in your career or have long-term financial responsibilities, like paying off a mortgage. Below are other circumstances that may warrant a 20-year term life policy.
Parents of young children
If your children are young or you’re planning to have children in the near future, a 20-year term may be a good fit for your situation. You can likely assume that your children will be dependent on you until they’re at least 18, so you want your coverage to last long enough to provide them with a financial safety net.
People with long-term insurance needs
Long-term insurance needs can include personal loans, business loans, or other financial obligations — like if you’re expecting to care for aging parents in the next 20 years. A 20-year term life policy can cover any expenses that’d need to be paid in your absence.
Homeowners paying off a mortgage
A 20-year term life insurance policy may be a fit for you if you’re in the process of paying off your mortgage, or you’re planning to take out a 20-year mortgage. This way, your loved ones wouldn’t have to worry about paying the remainder of the balance, or having to quickly sell your home.
Adults planning their retirement
Most working adults are consciously saving for retirement either for themselves or for themselves and a partner. By retirement, it’s ideal to have enough money saved for your remaining expenses and the cost of your lifestyle. But until then, a life insurance policy can put a financial safeguard in place if you were to die prematurely.
Advantages & disadvantages of 20-year term life insurance
20-year term life insurance is often affordable, but whether it’s a fit for you comes down to your personal situation.
Advantages
Easy for future budgeting. Once you activate your policy, your premiums are typically set for 20 years, so you can budget exactly how much you need to spend and know that won’t change, even if your health changes while your policy is active.
Often affordable. Depending on your age, health, and coverage amount, a 20-year term life policy is often an affordable option. It’s cheaper than longer term lengths.
Disadvantages
Can be expensive to renew. If you’re a young adult, you may need coverage beyond just 20 years. And applying for a new policy in your 40s or 50s will be significantly more expensive than applying for a longer policy upfront.
May not last long enough. If you have a 30-year mortgage or you expect to work for longer than 20 more years, you may need a longer term in the first place.
How much does a 20-year term life insurance policy cost?
A 30-year-old male who doesn’t smoke could pay between $22 and $43 per month for a 20-year, $500,000 term life insurance policy. A 30-year-old female who doesn’t smoke could pay between $19 and $34 per month for the same coverage.
The best way to know how much you’d pay for a 20-year term policy is to connect with a licensed agent, who can give you personalized quotes for your situation.
Cheapest 20-year term life insurance rates
Age | Gender | $250,000 coverage amount | $500,000 coverage amount | $1 million coverage amount |
20 | Female | $12.77 | $18.54 | $25.94 |
Male | $15.48 | $23.66 | $35.58 | |
30 | Female | $12.76 | $18.90 | $28.19 |
Male | $14.62 | $22.59 | $35.59 | |
40 | Female | $17.88 | $28.73 | $47.41 |
Male | $20.67 | $34.27 | $58.11 | |
50 | Female | $36.14 | $63.71 | $111.43 |
Male | $46.10 | $81.71 | $149.81 |
Methodology: Average monthly rates are calculated for male and female non-smokers in a Preferred Plus health classification obtaining a $250,000, $500,000, or $1,000,000, 20-year term life insurance policy. Life insurance averages are based on a composite of policies offered by Policygenius from Brighthouse Financial, Corebridge Financial, Foresters Financial, Legal & General America, Lincoln Financial, Mutual of Omaha, Pacific Life, Protective, Prudential, Symetra, and Transamerica. Rates may vary by insurer, term, coverage amount, health class, and state. Not all policies are available in all states. Rate illustration valid as of 01/01/2024.
Average 20-year term life insurance rates
Age | Gender | $250,000 coverage amount | $500,000 coverage amount | $1 million coverage amount |
20 | Female | $21.85 | $33.82 | $52.73 |
Male | $26.58 | $42.64 | $71.62 | |
30 | Female | $22.51 | $34.41 | $56.90 |
Male | $26.82 | $43.11 | $71.67 | |
40 | Female | $34.12 | $53.51 | $93.08 |
Male | $40.56 | $67.19 | $117.46 | |
50 | Female | $72.97 | $121.88 | $219.57 |
Male | $91.59 | $156.80 | $290.70 |
Methodology: Average monthly rates are calculated for male and female non-smokers in a Standard health classification obtaining a $250,000, $500,000, or $1,000,000, 20-year term life insurance policy. Life insurance averages are based on a composite of policies offered by Policygenius from Brighthouse Financial, Corebridge Financial, Foresters Financial, Legal & General America, Lincoln Financial, Mutual of Omaha, Pacific Life, Protective, Prudential, Symetra, and Transamerica. Rates may vary by insurer, term, coverage amount, health class, and state. Not all policies are available in all states. Rate illustration valid as of 01/01/2024.
Learn more about term life insurance rates
20-year term life insurance rates for smokers
Age | Gender | $250,000 coverage amount | $500,000 coverage amount | $1 million coverage amount |
20 | Female | $44.22 | $74.34 | $130.15 |
Male | $59.39 | $102.27 | $177.77 | |
30 | Female | $49.21 | $83.92 | $152.71 |
Male | $63.88 | $110.73 | $199.35 | |
40 | Female | $87.51 | $150.37 | $278.83 |
Male | $112.57 | $201.96 | $374.50 | |
50 | Female | $197.68 | $350.72 | $658.26 |
Male | $262.86 | $477.29 | $905.43 |
Methodology: Average monthly rates are calculated for male and female smokers in a Standard Smoker health classification obtaining a $250,000, $500,000, or $1,000,000, 20-year term life insurance policy. Life insurance averages are based on a composite of policies offered by Policygenius from Brighthouse Financial, Corebridge Financial, Foresters Financial, Legal & General America, Lincoln Financial, Mutual of Omaha, Pacific Life, Protective, Prudential, Symetra, and Transamerica. Rates may vary by insurer, term, coverage amount, health class, and state. Not all policies are available in all states. Rate illustration valid as of 01/01/2024.
Learn more about life insurance for smokers
20-year term life insurance rates for seniors
Age | Gender | $250,000 coverage amount | $500,000 coverage amount | $1 million coverage amount |
60 | Female | $107.83 | $194.16 | $354.51 |
Male | $149.38 | $268.04 | $499.98 | |
70 | Female | $404.42 | $764.19 | $1,378.99 |
Male | $487.28 | $948.52 | $1,893.26 |
Methodology: Average monthly rates are calculated for male and female non-smokers in a Preferred health classification obtaining a $250,000, $500,000, or $1,000,000, 20-year term life insurance policy. Life insurance averages are based on a composite of policies offered by Policygenius from Brighthouse Financial, Corebridge Financial, Foresters Financial, Legal & General America, Lincoln Financial, Mutual of Omaha, Pacific Life, Protective, Prudential, Symetra, and Transamerica. Rates may vary by insurer, term, coverage amount, health class, and state. Not all policies are available in all states. Rate illustration valid as of 01/01/2024.
Learn more about life insurance for seniors
What happens after a 20-year term policy ends?
At the end of your term, your policy will expire and you’ll no longer have coverage. If you want to extend your coverage, you have a few options — including renewing or converting your policy.
Renew your policy
You can usually choose to renew your policy on an annual basis at the end of your original term. This means your premiums will increase with every renewal, but you usually won’t have to take a new medical exam (which is a standard part of the application process).
This option can be expensive — sometimes it’s cheaper to buy a new policy altogether, but it depends on your age and health at the time of renewal. You can work with an independent broker to compare prices from different insurers before making a decision.
Convert to a permanent policy
You can often convert a term life policy into a permanent policy — like whole life or universal life — either before the end of the term, or before you reach a certain age.
Permanent life insurance coverage doesn’t expire, so you’ll have financial protection for the rest of your life. However, these types of policies are significantly more expensive than term life policies. If you have a high net worth and therefore a high budget, or specific estate planning needs, this option might be worth exploring.
Learn more about the differences between term and permanent life insurance
Get a new policy
You can let your 20-year term expire and apply for a new policy. With this route, you’d start the application process from the beginning and you’d likely take another medical exam. This option can be a good fit if you still need life insurance coverage for a number of years — even if you need a lower coverage amount or a shorter term length than you originally bought.
Best 20-year term life insurance companies of 2024
Your personal circumstances — including your age, gender, health, and financial needs — will impact which life insurance company is best for you. A 20-year term life insurance policy is one of the most popular coverage options, so most insurance companies offer term lengths of 20 years.
Below are some of the best term life insurance companies that offer affordable 20-year terms.
Methodology
Why you can trust our picks
Our recommendations are based on internal and external expert analysis, as well as our Policygenius Life Insurance Price Index, which uses real-time data from leading life insurance companies to determine pricing trends. When reviewing a life insurance company, our editorial team uses a proprietary scoring rubric with five factors — price, policy details, financial strength, transparency, and customer experience — to assign an unbiased rating between one and five stars. These ratings are also taken into consideration as part of our company recommendations. We don’t get paid for our reviews.
Our reviews and recommendations can help you find a reliable insurer for your family’s financial protection, but the best life insurance company for you depends on multiple factors. A licensed agent at Policygenius can support you during the application process to ensure you get the right coverage for your circumstances at the most competitive price.
2024 Policygenius award winner
Legal & General America
4.9
30+ year terms
All 50 states
No-medical-exam option
Why we chose it
Legal & General America, which also does business as Banner Life and William Penn, has some of the longest term lengths — up to 40 years — and most competitive life insurance rates available, even for people with a history of medical conditions.
Pros and cons
Pros
Competitive rates for a variety of health conditions
Fast instant-decision option for qualifying applicants
Variety of term lengths up to 40 years
Cons
Application underwriting can take longer than average
Does not have the most competitive rates for older applicants
As one of our overall best life insurance companies of 2024, Legal & General America, which also does business as Banner Life and William Penn, is a great option for anyone looking for an affordable 20-year term life policy. The company has more flexible guidelines for a number of pre-existing health conditions than many of its competitors.
Depending on your health profile, you may not need to take an in-person medical exam. You’ll submit your health information along with your application, and the insurer will review your profile first to determine if you need to take one.
2024 Policygenius award winner
Brighthouse Financial
5.0
No-medical-exam option
Why we chose it
Brighthouse Financial offers competitive rates, comprehensive coverage, and application decisions in as little as 24 hours, making it a great choice for people who want to get life insurance coverage without having to take the medical exam.
Pros and cons
Pros
Extremely affordable
Instant-decision applications
Best-in-class no-exam option
Cons
Traditional term life not available in CA, IL, LA, ME, or NY
Term life applicants limited to ages 25-50
Brighthouse Financial offers affordable rates and term lengths of 10, 20, or 30 years. People with few health conditions or risk factors can qualify for coverage without taking an in-person medical exam.
2024 Policygenius award winner
Pacific Life
4.8
All 50 states
No-medical-exam option
Why we chose it
Pacific Life offers some of the lowest rates for term life insurance across age brackets. It also has the most competitive rates for many health conditions and builds.
Pros and cons
Pros
Extremely affordable across age brackets
Affordable guaranteed universal life insurance option for people who need lifetime coverage
Favorable underwriting for many health conditions
Cons
Traditional term life not available in NY
There are better carriers for active duty military, people who have a history of alcohol abuse, and people who have been through bankruptcy
Pacific Life is another highly rated company that offers an affordable 20-year term length. Pacific Life has flexible guidelines for certain pre-existing conditions, such as sleep apnea. It can also offer cheaper rates to older adults when compared to some of its competitors.
Comparing the best 20-year term life insurance of 2024
Company | Policygenius rating | AM Best rating | Cost | |
5.0/5 ★ | A | $ | ||
4.9/5 ★ | A+ | $ | ||
4.8/5 ★ | A+ | $ |
Learn more about the best life insurance companies of 2024
How to buy 20-year term life insurance through Policygenius
Alternatives to 20-year term life insurance
20-year term life insurance is a good option for many shoppers, but you may have coverage needs that last longer than just 20 years.
20-year term vs. 30-year term life insurance
A 30-year term life insurance policy is another popular term length option, especially for young adults or people with young children. A 30-year term life insurance policy could ensure you have financial protection until young children are financially established on their own.
It could also help if you plan to take out a 30-year mortgage — this way, you won’t have to worry about your loved ones paying the rest of the balance if you were to die unexpectedly.
20-year term vs. whole life insurance
If you’re planning to use life insurance as an investment vehicle or an estate planning tool, you might consider whole life insurance or another type of permanent policy instead. Whole life insurance never expires and comes with a cash value feature, which can be used as a tax-deferred savings vehicle.
For these reasons, it’s significantly more expensive than term life insurance. It’s generally best to discuss with a licensed agent or financial advisor first if you’re considering whole life insurance.
Learn more about the differences between term and whole life insurance
More term life insurance options
Frequently asked questions
Do you need to take a medical exam for a 20-year term life insurance policy?
The medical exam is a common part of the application process, but you might not necessarily need to take one. Some insurers require a health questionnaire online or over the phone instead — your policy options depend on your age, health, and coverage amount.
What factors affect the cost of a 20-year life insurance policy?
Your coverage amount, age, gender, health, and lifestyle factors all affect how much your life insurance costs. You can connect with a Policygenius expert for free to get a personalized quote.
Can you extend a 20-year term life insurance policy?
You can usually renew a 20-year life insurance policy at the end of its term, but at a more expensive rate.
Can you cash out a 20-year term life insurance policy?
Term life insurance policies don’t come with a cash value feature, so you can’t cash out a 20-year term policy.
