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In This Article I’m Going To Discuss The Multiple Reasons Why People Look For A 25 Year Term Insurance Plan In Order To Help You Determine If A 25 Year Term Product Is Best Suited For Your Particular Goals
Most likely you’re here today because you have decided that a term insurance product that lasts 25 years may be a good idea in order to cover the obligations you have in mind.
If this describes your circumstances, this article will do an excellent job of summarizing all the details you need to know when looking for a 25 year term insurance product that accomplishes the goals you have in mind.
NOTE: Would you prefer me to present this information to you in video format? Watch the video below for the complete presentation. Enjoy!
Specifically, We’re Going To Be Talking About The Following Topics:
- The Types Of People Who Get A 25 Year Term Life Insurance Product
- Reasons To Get A 25 Year Term Product
- Top 5 Reasons People Purchase Life Insurance Online
- Case Study Examples
- Why Buy A 25 Year Term?
- Stories From The Field
- Drawbacks Of A 25 Year Term Life Insurance Plan
- Strategies To Buy A 25 Year Term Life Insurance Product
- Available Rates For 25 Year Term Life Insurance Products Based On Age, Health And Sex
Who are the most common people to get a 25 year term life insurance product?
In this section, I’m going to detail the most common types of people that purchase a 25 year term life insurance product. This will help you understand and visualize the type of person that may buy a 25 year term life insurance product, as well as the circumstances which lead them to believe this type of product is the best choice for their life insurance needs.
The reason this is important is because you yourself need to crystallize your need so that you are convinced that a 25 year term insurance product is the most suited to your particular goals and life circumstances. Let’s get started.
If you are single and looking for a life insurance product, a 25 year term life insurance product may represent an excellent choice for your life insurance goals.
Here’s why. If you’re single, have never been married, and don’t have children, you are probably realizing that one day you hope to have a family and you want to be financially prepared.
While prices are still competitive and you’re still young and healthy, buying a 25 year term life insurance plan is a good idea because it allows you to lock in a low price on your life insurance rather than waiting 10 or 20 years down the line. At the same time it will also protect your family very early on from the very beginning of marriage.
Single and divorced
Many times a single person who has been previously married has children. They may or may not have custody of the children but they feel it’s necessary to buy some kind of life insurance protection, to take care of their surviving loved ones if they pass.
If a custodial parent passes away, then the life insurance proceeds can be used to take care of the children by funding things such as their college payments or simply to help give them the best life possible.
If you are the ex spouse paying child support, a 25 year life insurance plan can do an excellent job of covering any sort of child support that you would not be able to pay if you happen to pass away. This will effectively ensure your children are taken care of financially.
If you are recently married or have been married for a while – Congratulations. You’re at a point in your life where it’s really important to consider the welfare of other people who depend upon you. You also need to consider the realities that life is mortal and fleeting and we don’t know when our final day is going to be.
Many times at this point in life, when people have recently gotten married or have begun to have children, they seriously consider purchasing a 25 year term life insurance product, typically to leave a legacy behind to their family to make sure that they’re financially cared for.
This type of coverage can also fund retirement, college planning and the like.
Mid career and up and coming professionals
Many times I’ll talk to people who are in their thirties, forties, and beyond who are doing well in their career and starting to gain promotions. This means their income is increasing. In many circumstances people buy larger homes, thus creating larger mortgage obligations. They also have a higher standard of living.
If this particular person were to pass away unexpectedly, this entire lifestyle and comfort level established after many hard years of work would be gone in an instant. This is where a 25 year term life insurance product makes a lot of sense.
You can buy a supplementary policy if you already have life insurance to add additional coverage to accommodate for your standard of living increase.
Near retirement or at retirement
If you find yourself in your late fifties and early sixties, you may be eligible for a 25 year term life insurance product designed to cover a lot of the same obligations as mentioned earlier. Many people end up close to retirement in age, but not necessarily close to their financial retirement goals.
A life insurance product can help with financial planning goals such as the savings and investment of a retirement plan, as well as cover a mortgages. A 25 year term life insurance plan is long enough to cover many types of obligations and give a lot of leeway to the insured so that they’re survivors have plenty of coverage time in place.
We are dedicated to helping people like you get affordable life insurance whether you use it to cover things such as final expenses like burial and cremation or to replace your income to give you peace of mind.
Give us a call at (888) 626-0439 for a no obligation quote to find out what you might qualify for. You can also submit a message to the left-hand side of the screen and we will reach out to you within the next 24 business hours.
Reasons to get a 25 year term life insurance product
Let’s shift gears and talk about the specific decision points in different people’s lives, young and old, that cause them to seriously consider and ultimately purchase a 25 year term life insurance product. We’re gonna break down six different scenarios that would make an individual confident in their decision to buy a 25 year term insurance plan.
The goal here is to help you understand the need for life insurance and relate it to your own set of circumstances.
1. Mortgage protection
The biggest obligation most Americans have is their mortgage. They owe a particular sum of money on their home and if they pass away that sum of money would become due in an instant and may cause the spouse or family to be foreclosed upon and lose their home.
Many people purchase a 25 year term insurance plan to cover the length of time in which a mortgage is enforced. This way if death occurs before the pay off of the mortgage, the life insurance plan comes into action. The beneficiary is the family and the family can pay off some or all of the mortgage.
This gifts the family with peace of mind as well as the ability potentially to live free and clear in their home without the risk of being evicted.
2. Income replacement and retirement
Many times, in addition to making sure that a mortgage is taken care of, people purchase a 25 year term life insurance product to also cover for the potential risks of losing out on future income and achieving future retirement goals.
Let me give you an example:
Let’s say you’re 40 years old and your plan is to retire at 65. You have certain income goals that you want to achieve, such as saving for an adequate retirement, funding your children’s college expenses and so forth, and you’ve determined that a 25 year term insurance plan at a million dollars in coverage is the perfect type of plan to accommodate those goals should you die within the next 25 years.
If you were to die with this plan, the lump sum would be paid to your spouse. They would in turn be responsible for taking care of your final expenses and funding those goals you had in mind.
If your goal is to replace income, a 25 year term insurance product does a fantastic job of doing so. Retirement funding, again, coupled with a life insurance plan to take care of income, is also a component to ensure retirement funding into the future.
A portion of your income probably already goes towards a retirement plan, either through a 401k or pension type setup. And if you pass away, you can’t contribute anymore to a 401k simply because your family’s income has been altered dramatically.
A portion of that life insurance death benefit can fund future requirements for your investing goals so that at retirement your familycan live more comfortably and have money on hand to live a better retirement lifestyle.
3. Leave a legacy
Many people purchase the 25 year term life insurance plan because they want to make sure that their children and grandchildren have money when they pass away. This money could serve to give them a boost in life, whether that’s to get started in school, to pay for a down payment on a house or buying a car.
A 25 year life insurance plan is also great for individuals who want to leave money behind to their church or favorite charity.
If you have an organization in mind that you’d like to be the beneficiary of your death benefit, you can simply name the organization as a beneficiary. And if you pass away within the 25 year term period, that payout goes directly to the organization of your choice.
4. Small business owner or entrepreneur
If you are a small business owner or entrepreneur, chances are you may have somebody involved in your business on a partnership basis. Have you ever wondered what would happen to your business if your partner passes away?
If you don’t have any sort of particular documents in place or a business disillusion plan drafted, what will happen to your business? Typically what happens is that the surviving members of the business partner would come into play and take over the responsibility of the deceased partner. These individuals, who could be strangers to you, now have decision making power in the business.
Here’s the problem with that situation. They may have different goals and objectives than the ones that you and your partner had set aside, which may have a disastrous effect on the long term course and profitability of your business.
Instead of taking this risk, consider purchasing what’s called a buy-sell agreement, which is designed to fund a buyout provision that you craft with your attorney.
The concept is simple. The corporation pays the premiums. The insured individual is the partner. If the partner passes away, the beneficiary on the policy is the surviving family members, and then there’s the draft that’s done with the lawyer that stipulates the buyout provision. This provision would state that the payment from the life insurance plan is equal to a pay off and would essentially allow the surviving business member to buy the shares from the deceased partner’s family members.
This allows your business to continue at a strong pace and does not have the same problems attached to it as you might experience if you have to contend with an heir who may not understand the business nearly as well as you.
5. Loan collateralization
If you are looking into getting a bank loan for your business, you can get what’s called a loan collateralization policy that covers your bank on any bank financing that you achieve.
Many times during the process of applying for a bank loan the bank will require that you hold life insurance coverage that names the bank as the beneficiary. This gives them a level of comfort in offering a loan should anything happen to you during the pay off period.
6. Cover key employees
Perhaps you’re in business for yourself and have key people in your organization that play an important role in the sales, marketing, or the operations of your business. Imagine losing those people.
If you lost a key employee, would you also see losses in the form of your relationships with vendors and customers? Would inefficiencies crop up and cause financial loss because this person was a critical components to a smooth running operation?
If you answered yes, then a key man life insurance policy may be a good idea to consider to protect your business. If you lose a critical person, it can have an adverse financial affect on your business. The process of the key man policy is simple.
You simply take out a 25 year term life insurance plan or whatever length of time that suits your business’ financial goals. The corporation pays the premiums and in return the life insurance covers the loss of that key person, so the corporation receives a death benefit if the key man dies.
Ultimately this allows you to have cash on hand to help with liquidity and cost loss concerns. It also buys you time to hire and train someone to replace that key person and reconnect roles and relationships with vendors, customers and the like, giving your business a higher chance of long term profitability.
If you ave found this article useful so far, give us a call at (888) 626-0439 now to receive a free, no obligation quote.
You’ll speak to one of our friendly representatives who can answer any questions you might have. Alternatively, send us a message directly and we will respond within the next 24 business hours.
Top 5 Reasons People Purchase Life Insurance Online
1.You are in control
With the advent of technology consumers have far more control over their purchases. You can research life insurance online and make an educated decision all on your own terms.
This is the biggest advantage to buying life insurance online, especially through someone like Buy Life Insurance for Burial. We give you all the tools to get the best options available to fit your particular needs.
2.No sales people in your house
Sales people have a bad rap and it’s understandable. After all, who enjoys a stranger coming to their home to offer overpriced life insurance?While you still need an agent in many circumstances to purchase life insurance, the good news is that you do it on your terms and not in your home.
If you like the idea of doing business over the phone or over the internet and you want to control the process in which you deal with people, buying life insurance online through Buy Life Insurance for Burial is a good idea.
3.Take time to make a decision
Without having a salesperson in the home you are not under any sort of pressure to make a decision. While I, as an agent, will be adamant that you need to get life insurance, you still can do it on your own terms.
Buying online removes a lot of the salesman pressure that would otherwise compromise the values of careful decision making.
4.Do your background check
You can look up insurance companies and brokers online to see reviews and get background information about the company and you can do this all of your own accord in the privacy of your own home.
5.More comfortable pace to doing business
Ultimately doing business online, as mentioned earlier, allows you to control the pace and the progression of purchase. The internet has really liberated the buying process.
Case Study Examples
Birth of First Child and Hypertension Issues
A couple recently reached out to me after the birth of their first child with the concern that if one of them died earlier than expected the surviving spouse would struggle to keep up with payments with the additional cost of a child.
The only problem was that the wife had high blood pressure and had to take medication to prevent other health issues related to hypertension. The couple worried that they would be declined coverage or have to pay an exorbitant rate due to the wife’s health issue.
The good news is that since they decided to work with Buy Life Insurance for Burial we were able to shop the most competitively priced companies out there and offer him the best combination of pricing and coverage.
While we can’t guarantee every applicant will be eligible for coverage if you match the same circumstances, what we can promise at Buy Life Insurance for Burial that we’ll do our best to get you the best combination of price and coverage.
New Business Owner with a History of Depression
A woman recently reached out to me because she was trying to get a business loan to help finance her newly growing business operations. The bank wanted her to get insurance against her own death and indemnify the bank in case she was to pass away, removing the financial burden of the bank collecting from her family.
The potentially bad situation my client faced was that she had a history of depression. While she was getting counseling and feeling better, she was on medication and feared this would have an affect on her coverage.
Because this client came to a broker, we were able to get her first day, full coverage at a price she could afford. While we can’t guarantee the same outcome for everyone, Buy Life Insurance for Burial does their best to provide quality, affordable coverage to all of our clients.
Why buy a 25 year term?
Most likely you’re here today because you’re specifically looking at a 25 year term life insurance product to cover your life insurance goals. However, there may be circumstances where more or less coverage is necessary.
In this section, I want to go over the most important aspect that will allow you to determine an appropriate term time for your insurance goals. It’s really important to understand that you should always match the problem that causes the need for life insurance with an appropriate term product or different insurance product that aligns with your particular goals that you’re trying to accomplish with life insurance.
Let’s say for example, you are a divorcee. Your ex has custody of the kids. You have a divorce arrangement that says that your children, who are five and younger, require a life insurance policy until they’re age 18. If your youngest is four years old, a 25 year term life insurance plan may not necessarily be the best fit.
Why? Because the child support arrangement says that coverage is only necessary up to age 18. So in this case a 15 year term life insurance product will be much more appropriate, which would cover to age 18.
There are circumstances where length of time does matter. My recommendation is to talk to us at Buy Life Insurance for Burial. We can help you with a needs analysis to better identify if a 25 year term life insurance product is the best choice for your circumstances and goals.
Another reason why people may consider a lower term insurance coverage period than 25 years is simply because a 25 year term insurance policy is too expensive for their budget.
Working in the insurance business, I’m of the persuasion that the only policy to get is the one that easily fits your budget. The last thing I would want my clients to do is buy too much insurance, only to drop it in six months or less.
My recommendation is if the 25 year term life insurance coverage simply doesn’t fit your budget, consider lowing your amount of time in which you may keep the policy or alternatively lower the amount of coverage in order to keep the time intact.
Either way, I’m open to my clients considering both routes because I believe the ultimate goal is that they purchase something they can continue to make payments on throughout the life of the policy.
Something is better than nothing
Occasionally 25 year term insurance products are not available to applicants. If you’re in a circumstance where your age is advanced, say you are fifty or older, there may be circumstances where a 25 year term life insurance product is not available. Many times, term insurance becomes less and less available to people once they reach fifty and beyond.
If you don’t qualify for 25 year term insurance, there are other options available. You can get term life insurance for smaller lengths of time such as 20, 15 and 10 year term level increments. Or you may opt for a universal life plan which can be designed to last for a full 25 year period of time as long as it’s properly structured.
Stories from the field
Having helped over 3,000 people with their insurance needs since 2011 it amazes me the extreme extent to which people get ripped off on their life insurance coverage, whether it’s being charged too much for their coverage or having inadequate coverage. The following story makes this point clear.
A couple of years ago I met a nice couple in a small town in Georgia just outside the Tennessee, Georgia border. This couple had been paying on life insurance for about 6 months with a particular company.
When I stopped by their home to speak with them about life insurance, the gentleman who answered the door expressed his satisfaction with his coverage and encourage me to potentially speak to him again in 6 months to see if anything had changed.
The entire time I was talking to this gentleman and was informing him that the coverage that he had was inadequate, as it was overpriced, I noticed his wife was quietly listening. She just sat and pondered what I said, leaving me to wonder how much of an impact it was making on her.
When it was time to go, I walked back to my car and was surprised when the gentleman ran back out to speak with me one more time. He asked if I could explain life insurance a little clearer so that he could better understand what was going on with the coverage he had.
Long story short, the couple switched to Buy Life Insurance for Burial and saved $400 a year on their coverage.
The pros of a 25 year term life insurance product
I want to talk about the four particular positive aspects of a 25 year term life insurance product and why certain people under certain circumstances can greatly benefit from such a plan.
Length of time
A 25 year term life insurance product covers an insured person for life insurance. It lasts for 25 years, which in many cases is enough time to cover for the most common reasons that bring people to the decision to purchase life insurance in the first place.
If you want to replace the potential for lost future income if death occurs earlier than expected, replace monies that will be set aside, and cover things such as paying off a mortgage or funding a retirement, than a 25 year plan would probably make perfect sense.
There may be a circumstance in which you need coverage for life insurance longer than a 25 year period of time. For example, you may find near the end of the 25 year term period that you actually need to have some proportion of coverage left. There are many types of 25 year term insurance policies as well as options to convert your coverage.
This concept is simple. It allows at a particular period of time in the future for you to convert a portion of your term insurance product into what’s called permanent life insurance, which in most cases will not go up in price.
This convertibility is very useful in cases where you may find you still need life insurance later in life.
Many 25 year term life insurance products offer additional benefit riders that help enhance the living value of a life insurance plan while you are alive, rather than just offering benefit after you die. A couple of examples here include:
- Disability waivers that are designed to suspend premium payments if you become hurt or ill and cannot work.
- Chronic illness payment benefit riders that pay a lump sum benefit if you’re diagnosed with a chronic illness like cancer or a heart problem.
- Accidental death riders which pay a multiple of your coverage amount if you die by accidental means.
- Disability income riders that pay a monthly stipend or monthly benefit if you become ill or cannot work.
Which riders work best for you wholly depends upon what your insurance goals are. This is something we here at Buy Life Insurance for Burial are happy to discuss with you in the search for a life insurance plan that fits your particular goals.
Drawbacks of a 25 year term life insurance plan
In addition to the positive aspects of a 25 year term life insurance product, there naturally are going to be circumstances where a 25 year term product doesn’t really make a lot of sense. So we’re going to spend some time discussing what circumstances may best suit a 25 year term insurance product.
You may eventually outlive your term insurance
This goes back to the importance of setting up your insurance goals from the very beginning. If your need is not temporary, a temporary insurance product probably doesn’t make sense.
What I mean by this is that if you’re concerned about finances because of a permanent obligation like burial expenses, or you need a life insurance policy to replace your income and you need it guaranteed for a long period, then a term insurance product is an inadequate solution simply because you could outlive it.
If your financial needs are of a more permanent nature, I recommend looking at permanent life insurance products such as whole life insurance or universal life insurance since they can be designed to provide permanent protection.
Price increases are inevitable
Even with a 25 year term life insurance product, the likelihood is very high that you’ll outlive your coverage. And when you do, you’ll see a point where your premiums will probably skyrocket 10 times or higher than what you’re currently paying.
Again, this goes back to really the core problem. If your obligation lasts longer than the period of time in which the term insurance lasts, you may very well face the risk of not having coverage when you need it most.
Strategies to buying a 25 year term life insurance product
The recommendations that follow provide strategies to buying a 25 year term life insurance program at a more competitive price. My recommendation is to follow one or more of these recommendations in order to give yourself the best chances of the most coverage for the lowest monthly payment.
Consider an exam if you’re healthy
There are many types of life insurance application processes out there, one of which includes a traditional exam in which a doctor comes to your home at your convenience and draws blood, does a physical, takes your vitals and gives you a health questionnaire to fill out.
An exam, along with your medical history and any prescriptions that you may take, determines your insureability.
The alternative path is to do what’s called a non-medical application process, which doesn’t require an exam and only offers insurance coverage based off of past medical records. The reason I’m describing the difference between both is that one particular approach, the traditional approach, allows for the potential to gain a much better price than the nontraditional or the non-medical application process.
When an underwriter considers approving somebody for life insurance coverage, the more information they have that’s more relevant and more recent, the more likely they’re going to offer a rate that’s more competitive.
If you’re healthy and looking for a sizable amount of coverage, always considered taking an exam. Yes, it may be a hassle to try to coordinate it and get it done, but under many circumstances it’s a better overall deal for getting life insurance coverage and skipping out on it entirely.
If the coverage period is a concern
If you’re scared about outliving your term, you may want to consider looking at permanent life insurance coverage. Permanent life insurance coverage typically is more expensive than term insurance.
Be open minded to possibly considering taking less permanent coverage in exchange for a product that is permanent.
The reason I recommend this is because in many circumstances, life insurance underwriters are intelligent and are betting if they insure you for life insurance coverage, that you’ll outlive your life insurance. It’s very rare a life insurance policy pays out because many people simply outlive it.
Even if a permanent product offers a percentage lower than the amount of coverage you get through a 25 year term or longer term product, but does a better job of solving the immediate problem of needing permanent coverage, I would highly recommend a permanent product instead.
If you’re too old for a 25 year term insurance product
If you’re in your fifties or sixties you may find that you don’t qualify for a 25 year term product. If this is the case, consider a permanent product such as whole life insurance. Better yet, a universal life plan properly designed to cover you for the full 25 years can provide permanent life insurance over a particular period of time at level premiums. But make sure the universal life plan is properly designed.
Again, talk with your broker at Buy Life Insurance for Burial to help you better design a plan in order to do this effectively.
Laddering strategy versus one policy
Some insurance agents advocate taking out multiple policies with different amounts of life insurance coverage and term lengths in order to reduce the overall pricing of what is paid in.
This works well when the need for coverage over time is reduced, but most people have growing needs for life insurance as they get older, especially into their forties, fifties and sixties where a 25 year term insurance product makes a lot of sense.
There are times too where new obligations arise that we didn’t anticipate. As the old saying goes: man plans, God laughs. So maximize as much coverage as you can for as long as you can. If 25 years is suitable for you, don’t layer your coverage to reduce the overall expense expenditure. Again, you’re walking over dollars to pick up pennies. You need coverage and you need to maximize it, so get as much as you can for that 25 year period of time.
Buy from a life insurance broker
Your health, age, and other factors such as your profession, hobbies, and smoking status, all have an impact on your ability to qualify for life insurance. It’s important therefore to work with an insurance agent that can shop around to find you the best quality 25 year term life insurance products.
What may end up happening is that you’ll pay a substantial amount more if your insurance agent only offers one particular product.
Rates for 25 year term insurance
In this section we’re going to go over different coverage amounts that you can get for 25 year term life insurance coverage up to age 55. We will also cover universal life insurance for people who are older and can’t qualify for 25 year term.
Rates for $100,000 in Coverage
Rates for $250,000 in Coverage
Rates for $500,000 in coverage
Rates for $1,000,000 in Coverage
Rates for 2,000,000 in Coverage
Please note these are example rates. The rates are subject to change and the rated carrier upon acceptance of your exam and application.
Thanks for reading. Remember to get your free, no obligation quote today by calling (888) 626-0439 or sending us a message. I hope after finding out more about life insurance it has convinced you of the importance of having coverage on the books.
Brokers like us at Buy Life Insurance for Burial are here to help. Find out what your coverage might be by giving our friendly consultants a call today.