Which Companies Offer 40-Year Term Life Insurance and Should You Get It?

You can buy popular term lengths like 10 and 20 years from most life insurance providers. But 40-year term plans are only offered by Protective Life Insurance and Legal & General (also known as Banner Life).

A 40-year term life insurance policy is the longest term life insurance option available. This extended term length caters to specific financial planning needs but may only be suitable for some. It is suitable if you have long-term commitments — a 40-year term provides extended security. Other term lengths may be more appropriate for if you have shorter-term financial goals or are nearing retirement.

• Understanding 40-Year Term Life Insurance
• Life Insurance Companies That Offer 40-Year Term Life Insurance
• Advantages and Disadvantages of 40-Year Term Life Insurance
• Reasons to Buy a 40-Year Term Life Insurance
• Alternatives to 40-Year Term Life Insurance
• FAQ: 40-Year Term Life Insurance

Term life insurance is a type of life insurance policy providing coverage for a specific period, or "term." Beneficiaries receive the death benefit if the policyholder passes away within this term. While terms typically range from 10 to 30 years, 40-year term life insurance represents the longest term life insurance policy available.

Ideal for those with long-term financial obligations and commitments, 40-year term life insurance ensures stability over decades. However, this extended duration means a longer commitment and the potential for higher premiums. Selecting the correct term length involves weighing immediate needs against future security, so understanding these dynamics is important.

Term length is among the significant factors affecting the cost of life insurance. Generally, the longer the policy term, the higher the premium. This is because longer terms, such as a 40-year life insurance policy, encompass a more significant risk period for the insurer. As a result, 40-year term life insurance rates are usually higher than costs for shorter terms like 10, 20 or 30 years. The increased premiums reflect the extended coverage duration and the higher probability of an insurer having to pay out the policy over a longer time frame.

When choosing between 40-year term life insurance and permanent life insurance, it’s important to understand the differences and how they align with your long-term financial goals. A 40-year term life insurance policy, as the longest term life insurance option available, offers coverage for a specific period, ideal if you who need protection for extensive but finite commitments. Once the term expires, so does the coverage, unless it is renewed or converted.

By contrast, permanent life insurance, which includes options like universal life and whole life insurance, offers a lifetime of coverage along with a savings component that can grow over time. This makes it one of the largest life insurance policies in terms of potential financial value and flexibility. Permanent insurance is typically more expensive than term insurance due to its lifelong coverage and investment benefits.

Choosing between 40-year term life insurance and permanent life insurance often depends on factors such as age, financial needs and desire for an investment component. A 40-year term life insurance policy provides a more affordable and straightforward protection option suitable for specific long-term planning needs, while permanent insurance offers enduring security and potential wealth accumulation.

Protective Life and Legal & General are the only companies that offer 40-year term insurance policies. These two companies only made this policy length available to the market relatively recently. These policies are one of the largest life insurance policies available in terms of duration — the longest-term life insurance that most companies offer is 30 years.

Understanding the advantages and disadvantages of 40-year term life insurance is important for making an informed decision, helping you weigh whether this type of policy fits your needs.

Carefully consider the policy length you need, especially given the vast difference in average cost between term lengths. You’ll want to evaluate your circumstances to determine whether 40-year term insurance is the best option for you.

When determining the term length you’d like to take on, it’s a good idea to anticipate your future financial commitments, like your children’s educational expenses. A 40-year term life insurance policy is not for everyone. Although 10- and 20-year term lengths are more popular than lengthier terms, these may not be the best options if you anticipate long-term expenses.

While 40-year term life insurance offers long-term security, it may only suit some people's unique financial situation.

A 40-year term life insurance is relatively new, and it’s an option that is not available through most insurance providers. Below are common questions about these policies.