20-Year Term Life Insurance Costs by Age and Coverage Amount

For adults aged 30-50, 20-year term life insurance premiums vary significantly based on age, health status, coverage amount, and provider choice.  Older adults will pay significantly higher premiums due to the insurers risk for a 20-year term and smokers pay more for. 20-year policy due to risk factors associated with smoking. 

See the tables below for more detailed cost information for each category above.  The summary table provides the average cost and cost range for 20-year life insurance policies.

More Information: The cost of 10-year term life policies and the cost of 30-year term life insurance.

The 20-year term life insurance cost can vary depending on your age and the extent of your coverage. MoneyGeek collected average costs for people of different ages looking for policies with varying coverage amounts.

The cost for a 20-year policy for smokers or people with health conditions are higher due to more risk for the insurance company.  MoneyGeek analyzed the cost of a 20-year term policy for smokers and people in poor health.

More Information:  See our ranking of the cheapest life insurance for smokers and the cheapest life insurance with pre-existing conditions.

MoneyGeek collected quotes from various companies to help you identify the cheapest life insurance options for a 20-year term policy. Based on average rates, Allstate offers the most affordable policy with $250,000 in coverage at just $17 per month. For those seeking higher coverage amounts, Allstate is also the cheapest option. The company has an average monthly rate of $28 for a $500,000 policy and $49 for a $1 million plan.

The following table provides a breakdown of pricing between different insurance providers.

Smokers tend to have higher life insurance premiums than non-smokers. Based on MoneyGeek's data, Allstate offers the most budget-friendly option for smokers seeking $250,000 in coverage, with an average monthly premium of $38. It's also the cheapest insurance company for smokers looking for higher coverage amounts. It charges an average of $65 per month for $500,000 and $115 for $1 million in coverage.

For individuals in poor health seeking a 20-year term life insurance policy, finding an affordable option can be challenging due to higher risk factors. Allstate generally offers the lowest rates at various coverage levels. The average monthly premium for $250,000 in coverage is $19, $34 for $500,000 and $60 for $1 million.

Premium rates often increase with age, but prices can differ among companies. For 50-year-olds, Allstate offers some of the most budget-friendly options, with monthly premiums of $38 for $250,000 in coverage, $70 for $500,000 and $130 for $1 million. See the table below for a side-by-side comparison of insurance premiums.

A 20-year term life insurance policy provides life insurance  for a fixed period of twenty years. When you purchase this policy, you agree to pay regular premiums (typically monthly or annually) in exchange for a guaranteed death benefit (your coverage amount)on that will be paid to your beneficiaries if you die during the 20-year term.

The policy is straightforward: if the insured person passes away during the 20-year period, the insurance company pays the full death benefit to the named beneficiaries. 

This type of policy is popular because it offers substantial coverage during many families' highest financial risk years—when mortgages are outstanding, children are growing up, and retirement savings are still building. The premium payments remain the same throughout the entire term.

No-exam policies offer faster approval with digital applications and no blood work, appealing to busy individuals or those with minor health concerns. These convenient options are widely available for 20-year terms with competitive coverage limits.

• Coverage limits: Most companies offer up to $1-1.5 million for qualified applicants under 50; limits decrease with age
• Pricing: Expect to pay 15-25% more than exam policies; younger applicants see smaller increases (10-15%)
• Qualifications: Available for ages 18-60; requires clean health questionnaires; major conditions typically disqualify applicants
• Top providers: Bestow (up to $1.5M), Haven Life ($1M for qualified applicants), Protective and Nationwide (up to $500K)

Different factors affect the cost of a 20-year term life insurance policy. Knowing what these are can help you pick the right coverage.

Here are 7 easy steps to lower your 20-year life policy:

1. Pay annually: Save 5-10% by paying your premium once a year instead of monthly
2. Improve health metrics: Lower cholesterol, blood pressure, and BMI before applying
3. Compare multiple quotes: Rates for identical coverage can vary by 15-40% between companies
4. Consider policy laddering: Combine multiple policies of different term lengths to match decreasing needs
5. Look for group discounts: Professional associations and employer groups often offer 10-15% savings
6. Quit smoking: Non-smoker rates are 50-120% lower, but you typically need to be tobacco-free for 12+ months
7. Apply young: Each year you delay applying increases premiums by approximately 8-10%

A 20-year term life insurance will pay a death benefit for the specific policy amount that you choose.  

To determine your 20-year term life insurance coverage amount:

1. Add up your financial obligations (outstanding debts, future expenses like children's education, 5-10× your annual income for income replacement, and final expenses)
2. Subtract your existing assets (savings, investments, and current insurance coverage)

Use the calculator below to determine your coverage needs for a 20-year term life policy or see our resource on determining how much life insurance you need.

After the 20-year term ends, you can either let your policy expire, renew it at a higher rate or convert it into a permanent life insurance policy.

The decision to get a new term life policy depends on your coverage needs. If you still have your spouse or children as dependents, don’t have savings for end-of-life expenses or have a mortgage to pay, it’s often best to get a new term life policy.  If you don’t have any significant financial or personal obligations after 20 years, you can let the policy expire.

Knowing the answers to some frequently asked questions about a 20-year term life insurance policy may help you understand how it works and determine if it’s the right choice for you.