Having said that, my experience in pricing term life is that it tends to get rapidly more expensive as the length of the term takes you past age 60. Until part of the term takes you to 60, it seems that increasing the contract length had only a minor impact on premiums, but taking it out past 60 is where the "elbow" in the curve appears.
Depends on the price difference. IIRC, when I was in the term insurance market the difference in rates was substantial.
Ah, yes, just plugged in some numbers to a selectquote for 500K, excellent health, etc. 20 years was $643/yr 30 yr was $1060/yr
You can get a policy and then apply for a "re-entry" rate every 5 years, as long as your health is still good.
I went with a 20 year policy starting at age 43. The annual premums are fixed at the same rate for the first ten years at one rate and then step up significantly for the second ten years. The premiums for the first ten years were comparable with variable rate policies for someone at age 43.
I can cancel the policy at any time at no cost and will probably do so once I reach FI - if I have enough to support myself and my family while I am alive, by definition there must be enough to support the family without me once I am gone so it would be a waste of money to continue at that point.
If you can get a policy which is structured in a similar manner to mine (tiered payments and the right to terminate), going with the longer term may offer the benefit of guaranteed coverage if you need it without actually costing you anything if you don't need it and cancel later on.
This may be a hijack or it may be relevant to the OP's question. It seems to me that life insurance policy questions are often built on a premise that one policy will be purchased.
Why wouldn't someone buy both - a 20-year AND a 30-year policy? If income replacement needs go down after 20 years but don't go away completely until year 30, why not tailor the purchase to the need?
I would understand consolidating under one policy if there are significant discounts when buying a bigger policy, but my impression is that life insurance has a pretty straight premium-to-benefit curve.
I'm close to you in age and probably also have kids roughly the same age. I opted for a 25 year term, which seemed to fit my requirement of making sure that the youngest kid had reached adulthood before the term ended.
25 years from now, my assets will be the primary "insurance" that will take care of my family in my absence.