Yes, there is a 35-year term life insurance policy available in the U.S. today! Most consumers and even many agents are not aware that there are several highly rated insurance companies that now offer a 35-year level term life insurance policy. This is due to the fact that until several years ago, the longest term available of the market was a 30 year level or ‘fixed’ term. Most insurance companies would offer 10, 15, 20 or 30 year term lengths. However, with increasing life expectancy due to advancements in medicine and increased statistical data, several large life insurance carriers now offer a 35-year level term.
Table of contents
- How does a 35-year term policy work?
- Who is a 35-year term life insurance policy for?
- Who is eligible for a 35-year term policy?
- Are there any drawbacks to a 35-year term policy?
- Is a 35-year term policy any different than the other term lengths?
- Does the policy cover natural causes?
- Does the policy cover accidents?
- Does it cover suicide?
- Sample 35-year term life insurance rates
How does a 35-year term policy work?
A 35-year level term policy works exactly like any other term policy. Once you are approved, the rate is fixed for the next 35 years. The rate can never increase during that time regardless of age or health. Also, it is a unilateral contract, meaning you can cancel anytime without a penalty but the insurance company cannot cancel the policy on you (unless you don’t pay the premium). Also, the policy has a conversion option to permanent insurance, same as the shorter term lengths.
Who is a 35-year term life insurance policy for?
A 35-year term life insurance policy is ideal for anyone who would like to have a fixed rate on their life insurance policy for the next 35 years. For example, a young couple just starting out with a mortgage, children and may have additional children and would like to lock in their rate and insurability for the next 35 years. Also, there are many other instances where the insured and the beneficiary would like the added peace of mind of a longer 35-year term versus the 30-year term policy.
Ideally at a certain time in the future, the kids will be grown, the mortgage is paid down or off, you’re retired with assets. The need for life insurance should be greatly reduced or hopefully eliminated and you would be self-insured. Life insurance is there to replace the loss of future income so your loved ones that are left behind are able to continue on. The money provided by life insurance proceeds can care of the children, spouse, mortgage, future education, debts and daily living expenses. It can also leave a legacy.
Who is eligible for a 35-year term policy?
Typically the latest someone is eligible for a 35-year fixed term length is no later than 50 years old. After that, you would need a permanent policy. For those who are 51 year or older and are looking for a 35 year term, a no-lapse guaranteed universal life policy to age 90, 95 or 100 would be a great option to look at. It acts just like the term policy.
Are there any drawbacks to a 35-year term policy?
The only drawback for a 35-year term versus any other term is cost. With life insurance, the shorter the duration of the policy- the lower the cost. This is due to the fact that when the insurance company is locking in the rate for a shorter period of time, there is less of a chance they will have to pay out the money. A 10-year level term is the least expensive term policy, then it goes up from there, i.e. 15 year is more than 10 year, a 20 year is more than a 15 year term, etc. This why it’s recommend to do a needs analysis to see how long you will ideally need the life insurance protection for so your policy doesn’t expire too early or go too long and you don’t need to pay the higher premium.
Is a 35-year term policy any different than the other term lengths?
No. It’s the same exact policy as a 10, 15, 20, 25, 30 year term policy. The only difference is that with advancements in medicine and life expectancy a few life insurance companies now offer the 35 year term product and take on the risk of insuring someone for a longer duration.
Does the policy cover natural causes?
Yes, the 35-year term policy covers any type of death, expect suicide in the first two years. Natural causes or accidents are covered from day one.
Does the policy cover accidents?
Yes, the 35-year term policy covers any type of death, natural causes and accidents. The policy does not cover suicide in the first two years.
Does it cover suicide?
Yes, just like other term life insurance policies, the policy covers suicide after two years. Life insurance policies have a two-year contestability clause. This means if you commit suicide in the first two years of the policy or you lie on your application and die in the first two years, the insurance company can contest the claim and not payout.
Sample 35-year term life insurance rates
With advancements in modern medicine and increasing life expectancy, several of the largest life insurance companies in America now offer a 35 year term life insurance policy. This is a great option for someone that doesn’t want to pay the much higher price for a permanent life insurance policy but does want the security and peace of mind of having a fixed rate and life insurance coverage locked in for the next 35 years. Just as with the other term lengths, the insurance company will lock in the rate for the term but you can cancel the policy anytime without a penalty if you don’t need or want it. You just pay as you go. In deciding on whether a 35-year term life insurance policy is right for you, it’s recommended that you do a needs analysis on your own or with an agent to see what is best for you.