By Michael Horbal – updated on – 08/19/2022
Forty-Year Term Life Insurance May Be What You Need, But Maybe Not!
Get everything you need here to make an informed decision about your life insurance.
Who Offers 40-Year Term Life Insurance?
- Banner vs. Protective – 40-Year Term Life Insurance
- Advantages of 40-Year Term Life Insurance
- Disadvantages of 40-Year Term Life Insurance
- 40-Year Term Life Insurance Rates
It’s a new day in the term life insurance marketplace with 40-year term life insurance.
Anything new rarely happens in the term life insurance market.
Recently Banner Life Insurance Company introduced a 40-year term life insurance policy.
And it wasn’t long before Protective Life introduced its 40-year life insurance policy.
Banner Life and Protective Life are the only life insurance companies that offer this type of life insurance.
Previously, a 30-year term life insurance policy was the most prolonged duration available.
We’ll compare Protective Life and Banner Life to choose the best company for you.
Suppose you need a quick overview of the entire application process.
In that case, we recommend starting with our Life Insurance for Dummies guide.
Banner vs Protective – 40-Year Term Life Insurance
|Banner Life||Protective Life|
|Issue Ages:||20 – 45 |
(40 – tobacco)
|18 – 45 |
(40 – tobacco)
|Child Rider||Child Rider|
|Waiver of |
|Waiver of |
|Preferred Plus||Select Preferred|
Riders offered by both companies
Accelerated Death Benefit – In states where available, this no-cost rider will accelerate a portion of the death benefit.
You must be terminally ill to qualify for this benefit.
Banner Life will accelerate up to 75% of the policy’s primary death benefit, or $500,000, whichever is less.
Protective Life will accelerate up to 60% of the policy’s death benefit, or $1 million, whichever is less.
Children’s Rider – This is an additional cost rider.
Banner offers $5,000 or $10,000 per child. However, if both parents buy a policy, the maximum amount is $20,000 per child.
Protective Life’s Children’s Term Rider offers from $1,000 to $25,000 per child.
Conversion Privilege – You may convert the policy to permanent life insurance.
Banner’s conversion privilege is to age 70 or until the end of the level term period, whichever comes first.
Protective’s conversion privilege lasts up to 18 years.
Waiver of Premium Rider – This rider waives premiums in the event of total disability as defined in the policy contract.
While both companies use similar build charts, Banner has a slight advantage since they have a standard plus rate between the preferred and standard rates.
Term Riders – Banner offers term life insurance riders for their 40-year term life policy.
You may like the idea of a 40-year policy but don’t need the total amount of coverage for 40 years.
This is where Banner’s term riders work well and could save you some money!
You may combine a 40-year term policy with shorter duration term riders to give you the coverage you need at the best rate.
Both companies also offer you a choice of paying your beneficiary in a lump sum or choosing another option, such as a life income settlement option.
Protective offers an accidental death benefit rider for an additional premium.
Advantages of 40-Year Term Life Insurance
Here are just a few of the many advantages of 40-year term life insurance:
It’s worth considering if you think you may still need life insurance in 40 years.
- Retirement – This policy may cover you and your spouse until retirement.
- Real Estate – Coverage for mortgages & home equity loans.
- College Loans – Will you have debt after the kids graduate?
- Weddings – If you borrowed money, you’re still covered.
- Permanent Insurance Alternative – Compare to whole or universal life.
- One and Done – This may be the last policy you ever buy!
- Business – For key person life insurance.
- New York – Both companies are available in New York.
Another advantage Banner offers is $500k – $2 million life insurance with no medical exam.
Disadvantages of 40-Year Term Life Insurance
The disadvantages of a 40-year term are few but are important to consider:
- Price – Convenience comes with a higher price tag compared to a 20-year term or 30-year term.
- Competitors – Only Banner Life and Protective Life offer a 40-year term.
- Commitment – Do you need a term life of 40 years?
- Conversion – Banner’s conversion option is expensive compared to the market. Protective has better conversion products available.
- Age Limits – These products are not for seniors with age 45 cutoffs. Age 40 for smokers.
- Divorce – Most divorce decrees won’t require this length of coverage.
- Tobacco – Rates are expensive if you smoke cigars, chew tobacco, use marijuana, or pipe smokers.
And while Protective offers a 40-year term, if you buy coverage through a membership program like Costco, a 20-year term life is the longest term available.
You probably wouldn’t use a 40-year term for business life insurance collateral as the term is too long for most loan products.
Something else to consider is high-risk life insurance.
If you have a health issue in the past or currently have a condition, a 40-year term may/may not be the best option.
The reason is that pricing for some conditions may improve over time while others may worsen.
We wrote an article on life insurance statistics that details the term lengths most people buy. The 20-year term life insurance is still by far the most popular.
We’ll tell you what to expect when we discuss your request.
It’s vital that you take time to consider what your needs are today,
And what you expect future needs will be before buying life insurance.
40-Year Term Life Insurance Rates
Please take a few minutes to submit your quote request, and we’ll provide you with accurate quotes for both Banner Life and Protective Life.
|$500,000 – 40 Year Term||Banner Life||Protective Life|
|Male – Age 45||$185.68||$185.69|
|Male – Age 40||$112.62||$112.64|
|Male – Age 35||$69.85||$69.87|
|Male – Age 30||$53.37||$53.38|
|Female – Age 45||$145.31||$145.33|
|Female – Age 40||$90.03||$90.05|
|Female – Age 35||$52.00||$52.01|
|Female – Age 30||$38.57||$38.58|
Rates as of 3/30/2022. Since our 2021 update, some rates have increased, and some have decreased. We quoted the best underwriting rate class with each company. All rates are subject to underwriting, and you may not qualify for this rate.
The rate you’ll pay depends on the underwriting rate classes you qualify for. You may not qualify for the above rates.
Banner Life offers preferred plus, preferred, standard plus, and standard rate classes.
Protective offers preferred plus, preferred, and standard rates.
Life Insurance Ladder Strategy
A ladder strategy using Banner’s 40-year term life coupled with term riders of various durations may be the perfect answer.
Ask us to show you this option!
Term riders are available in 10, 15, and 20-year terms, and you may add multiple-term riders to your base policy.
For example, we can tailor your policy if you want $1,000,000 of coverage but don’t need it to be the 40-year term.
Some of it could be a 40-year term, and the balance is 10, 15, 20 years, or some combination of multiple terms.
Banner Life explains their term rider with the following pdf guide.
While Protective doesn’t offer term riders, you may ladder coverage with multiple policies.
It will accomplish the same results but be more expensive than the Banner term riders.
If you think about the various obligations and goals that you are looking to cover,
We can custom tailor coverage and term lengths to meet your exact needs.
Banner Life and Protective Life have been leaders in the term life insurance marketplace for many years.
Their term life insurance rates are usually some of the most competitive.
Both companies offer no exam life insurance (for some cases) and e-application options to make the process easy.
Please take a few minutes to submit your no-pressure, no-obligation quote request today.
We’ll provide you with the information you need to make an informed decision about your life insurance.
Michael J. Horbal
Owner of RiskQuoter
Too many people overpay for life insurance because they end up with the wrong life insurance company, agent, or both. That’s why I started RiskQuoter – To help you get the best life insurance rates available.
As an independent insurance agent, I’m licensed in all 50 states and the District of Columbia and offer 40+ life insurance companies to ensure you get your best rate!