What is a 30-year term life insurance policy?

Term life insurance policies are perhaps the most common form of life insurance, and they tend to have the most competitive rates. But their affordability doesn’t necessarily mean they are less valuable for you. In fact, term policies can offer higher coverage amounts than other forms of life insurance.

Term life insurance policies provide a payout to the listed beneficiaries if the policyholder passes away while the policy is in force. 

A term policy is in force for the duration of the “term,” so long as the premiums are paid. This term is decided at the time the policy is created. It’s often done in increments of ten, as in a 10-, 20-, or 30-year term life policy. That means if the policy expires and the applicable duration or term has completed, there won’t be a payout. So, while these policies are often less expensive than permanent life insurance, the policyholder may outlive the policy.

How much does 30-year term life insurance cost?

Term life insurance often has more competitive rates than permanent life insurance policies. Some of this is due to the impermanent nature of term policies. Yet, these policies are also usually cheaper because they often lack certain features, like cash value (some permanent policies can accrue value over time, some of which can be withdrawn during the policyholder’s lifetime). 

Monthly premiums for people in their 20s and 30s acquiring a 30-year policy are often under $100/month, with variance depending on the amount of the death benefit. The affordability of term policies is one reason they’re among the more common policies used in group life insurance plans.