The importance of life insurance cannot be overstated. Policies offer peace of mind, security and even financial benefits, making them suitable for virtually everyone looking to take that next step in their financial journey. But which policy is right for you? That’s the real question.
Life insurance is not one-size-fits-all. Different people have different circumstances resulting in different needs. That’s why, as a prospective policyholder, it’s important to learn about the different options available to you. Let’s take a look.
The life insurance landscape in 2019
There is an obvious market for affordable term coverage beyond 30 years, and that’s because of a couple factors. For one, Americans are living longer than they ever have before. The average person is expected to live three years longer as of 2015 compared to the average life expectancy twenty years prior. Combine that with the fact most Americans still carry a significant amount of debt after the age of 65. So, what does this all mean?
It means many people (maybe even you) would benefit from a 40-year term life insurance product – much like the one we recently began offering through our subsidiary, Banner Life. Here’s why:
Typical life insurance offerings provide 10 to 30 years of protection. According to LGA’s historic data, our average consumer purchases a life insurance product in their mid-40s, meaning they could live another 20 to 30 years after the policy expires. Meanwhile, Guaranteed UL (GUL) and permanent insurance products offer lifetime protection, but they are often much more expensive policies than term life insurance.
A 40-year term plan, however, is priced more closely to a 10 to 30-year term policy but with those valuable ten years of security added on. For people around the age of 45, a 40-year policy can provide life insurance coverage to age 85 at a fraction of the cost it would take to own a GUL policy.
Picture this scenario...
...A married couple in their mid-to-late 30s: both are looking to take out a life insurance policy to supplement their work-sponsored policies since those provided through their employers don’t offer enough to sufficiently protect their family. The couple wants policies that cover them through at least their working years (expecting to work until age 70). They like the affordability of a 30-year policy, but they wish the term was longer; a permanent policy is simply too expensive to fit into the couple’s budget.
Here’s where a 40-year term policy comes into play. Again, it can be secured at a budget-friendly rate similar to the 30-year policy, but with more financial security.
The current state of the life insurance landscape, and the reasons stated in the scenario above, are exactly why we’re proud to offer the first 40-year term product available in the United States, OPTerm 40. OPTerm 40 addresses a vital need in the marketplace for a longer duration of coverage at a price point that is still affordable for the many families seeking the stability and security that life insurance offers.
Does OPTerm 40 sound like something that might make sense for you and your family? If so, work with your financial advisor or find an agent to help you get started.