It’s a new day in the term life insurance marketplace with 40-year term life insurance!
This 40 Year Term Life Insurance Guide Covers:
- 40 Year Term Life Insurance Overview
- Advantages of 40 Year Term Life Insurance
- Disadvantages of 40 Year Term Life Insurance
- Policy Details of 40 Year Term Life Insurance
40 Year Term Life Insurance Overview
It’s rare that anything new or exciting happens in the term life insurance marketplace, but that’s exactly what happened when Banner Life Insurance Company introduced a 40-year term life policy recently.
In fact, it’s the first time that forty year term is available!
Previously, a 30 year term life insurance policy was the longest duration available.
If you wanted coverage for longer than 30 years, your only option in the past was a permanent universal life insurance policy.
In this guide, we’ll show you the pluses and minuses of a 40-year term policy.
Advantages of 40 Year Term Life Insurance
Here are just a few of the many advantages of 40-year term life insurance:
- Retirement – This policy may cover you until retirement and beyond.
- Real Estate – Coverage for mortgages, refinances, home equity.
- College Loans – Will you have debt after the kids move out?
- 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 have to buy!
It’s definitely worth consideration if you think you may still need life insurance in 40 years.
Disadvantages of 40 Year Term Life Insurance
The disadvantages of 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 – There are none. Banner Life is the only company.
- Commitment – Do you need term life for 40 years? (make sure you read term rider section)
- Conversion – If you need to convert to permanent insurance, Banner’s permanent insurance option is expensive when compared to other similar products in the market.
Something else to consider is high risk life insurance cases. 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 why is that pricing for some conditions may improve over time while others may get worse. We’ll tell you what to expect when we discuss your request.
It’s important that you take time to consider what your needs are today and what you expect they may be in the future before buying life insurance.
Check out our guide to help you with your decision making:
How Much Life Insurance Do I Need?
Our calculators are great for helping you determine life insurance needs.
Policy Details of 40 Year Term Life Insurance
This forty-year term policy is designed for people age 20-45
Age 20-40 for smokers.
The minimum policy size is $100,000 and it is possible to get up to $10 million or more if you qualify.
40 Year Term Policy Details:
Accelerated Death Benefit – In states where available, this no-cost rider will accelerate a portion of the death benefit in the event you become terminally ill.
Children’s Rider – This additional cost rider provides up to $10,000 per child.
Conversion Privilege – You may convert the policy to permanent life insurance during the level term period of the policy up until age 70.
Waiver of Premium Rider – This additional cost rider waives premiums in the event of total disability as defined in the policy contract.
Term Riders – This may turn out to be one of the better features on the 40-year term life policy.
You may think the idea of a 40-year policy is a great idea, but don’t think you’ll need the full amount of coverage for 40 years…that’s where Banner’s term riders work well and could potentially save you some money!
40 Year Term Life Insurance Rates
Monthly term life insurance rates for females – Preferred Plus rate class – as of 5/5/2019
| Age | $250,000 | $500,000 | $1,000,000 |
| 20 | $20.58 | $33.98 | $57.12 |
| 25 | $20.58 | $33.98 | $57.12 |
| 30 | $22.61 | $38.48 | $72.63 |
| 35 | $28.95 | $52.74 | $93.12 |
| 40 | $48.96 | $91.26 | $176.84 |
| 45 | $77.71 | $145.15 | $288.87 |
Monthly term life insurance rates for males – Preferred Plus rate class – as of 5/5/2019
| Age | $250,000 | $500,000 | $1,000,000 |
| 20 | $25.23 | $42.80 | $71.97 |
| 25 | $25.23 | $42.80 | $71.97 |
| 30 | $28.67 | $52.18 | $102.57 |
| 35 | $34.83 | $64.49 | $135.94 |
| 40 | $61.58 | $114.14 | $222.63 |
| 45 | $97.08 | $188.99 | $370.06 |
Life Insurance Ladder Strategy
A ladder strategy using some 40-year term life coupled with term riders of various durations may be the perfect answer for your life insurance needs. 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, if you would like to have $1,000,000 of coverage but don’t need it to all be 40-year term, we can tailor your policy so that some of it is 40-year term, and the balance is 10, 15, 20 year or some combination of multiple terms.
Banner provides an explanation of their term rider with the following pdf guide.
If you think about your various obligations and goals that you are looking to cover, we can custom tailor coverage and term lengths to meet your exact needs.
Underwriting rate classes available include:
- Preferred Plus Non-tobacco
- Preferred Non-tobacco
- Standard Plus Non-tobacco
- Standard Non-tobacco
- Preferred Tobacco
- Standard Tobacco
- Substandard Underwriting Classes available to Table 12 Rating
Availability in all states except New York.
Recent Life Insurance Articles
- Universal Life Insurance Everything You Need to Know
- Term Life Insurance – Why Some People Almost Always Save Money
- 30 Year Term Life Insurance
- The Best 20 Year Term Life Insurance Policies
In conclusion
Banner Life has been a leader in the term life insurance marketplace for many years.
Their term life insurance rates are usually some of the most competitive rates available.
In addition to their pricing, Banner offers no exam life insurance (limited situations), e-application options to make the life insurance process as easy as possible.
With the addition of Banner Life’s 40-year term life insurance policy, competitors have some catching up to do.
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. Thank you.
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