15-Year Term Life Insurance Policies In 2024

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Updated: 18 June 2024
Written by
Bob Phillips
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You’ve made the right decision by choosing to educate yourself about 15-year term life insurance policies. This type of insurance is an essential safeguard, providing your loved ones with financial security in the event of your death.

It offers a fixed premium for a specific period (in this case, 15 years), ensuring that your beneficiaries receive the policy’s full payout if you pass away within this term. The cost-effectiveness and simplicity of these policies make them a popular choice.

As an insurance professional who sold term life insurance for over 15 years, I can attest to the immense value these policies provide. I’ve seen firsthand how they can serve as a financial safety net, helping families navigate through difficult times without worrying about income replacement or debt repayment.

This article will leverage my extensive experience in the field, offering comprehensive insights into policy costs, benefits, and critical factors to consider when choosing a plan.

Key Takeaways

  • 15-year term life insurance is available for as little as $14 per month

  • Some life insurance companies offer the ability to convert these policies to permanent life insurance with a medical exam

  • Many top-rated insurers sell 15-year term life insurance

What is a 15-year term life insurance policy?

A 15-year term life insurance policy is a straightforward, cost-effective solution that caters to your family’s financial security needs. It’s an agreement between you and the insurance company, where you pay regular premiums for a fixed 15-year term. The insurer, in return, promises to deliver a predetermined lump sum to your loved ones if you pass away within this term.

One of the most significant advantages of a 15-year term life policy lies in its cost-effectiveness. These policies offer substantial coverage at lower premiums, making them an ideal choice for individuals seeking high-value protection without straining their budget.

Additionally, the fixed term provides a sense of certainty – you know exactly how long you’re covered and what benefits your beneficiaries will receive.

This policy type is particularly appealing due to its simplicity and affordability compared to other life insurance products. Whether it’s replacing lost income, clearing debts, or covering education costs, a 15-year term life policy can be instrumental in helping your loved ones maintain their lifestyle even in the face of adversity.

Why should I choose a 15-year term life policy?

If you’re considering 15-year term life insurance, it’s essential to understand its benefits in comparison to longer-term policies. A key advantage is affordability – 15-year term policies typically offer lower premiums than their 20 or 30-year counterparts. This cost-effectiveness does not compromise on coverage, ensuring you get comprehensive protection at a lower cost.

From my experience, this shorter term aligns better with major financial obligations, such as mortgage payments or child-rearing expenses. By the time the policy term ends, these significant expenses are often considerably reduced or even eliminated.

Customer ratings reinforce this view, with many policyholders appreciating the balance between affordability and coverage that 15-year term life provides. However, each individual’s circumstances are unique, and you should consider your own needs when making this decision.

Who should consider a 15-year term policy?

15-year term life insurance policies can be a strategic choice for those seeking cost-effective, comprehensive coverage. This type of policy is particularly beneficial for individuals with significant financial obligations that are expected to decrease over the next 15 years. Let’s look at some specific situations where this policy could be advantageous.

Situation 1: Paying off a Mortgage

If you’re a homeowner with a 15-year mortgage, this policy aligns perfectly with your timeline. The policy ensures that should anything happen to you within this period, your beneficiaries will receive a lump sum that can be used to pay off the remaining balance. It offers peace of mind knowing your loved ones won’t have to worry about mortgage payments in your absence.

Situation 2: Raising Children

For parents with young children, a 15-year term policy provides a safety net during the crucial years of raising and educating your kids. By the time the policy ends, your children will likely be financially independent, reducing the need for extensive coverage.

Situation 3: Transitioning to Retirement

If you’re 15 years away from retirement, this policy can bridge the gap between now and when your retirement benefits kick in. It ensures that your spouse or dependents will have financial support if you pass away before reaching retirement.

In all these situations, a 15-year term policy provides a layer of financial security, ensuring your loved ones can maintain their lifestyle in your absence.

How much does 15-year term life policy cost?

Determining the cost of a 15-year term life insurance policy isn’t a one-size-fits-all answer, as it’s influenced by various factors unique to each individual. To provide a clear and comprehensive understanding, it’s necessary to consider that these costs are calculated based on risk assessment, which takes into account your age, health condition, lifestyle choices, and policy death benefit amount. Let’s look at the cost of this type of policy based on these variables.

15 year term life cost – by age

Age Average Monthly Cost
25 $13 – $16
35 $15 – $19
45 $20 – $29
55 $30 – $49
65 $50 – $81

*$250,000 death benefit

 15 year term life cost – by coverage amount

Face Amount Average Monthly Cost
$100,000 $10 – $20
$250,000 $15 – $30
$500,000 $20 – $40
$1,000,000 $30 – $60

*$250,000 death benefit

 15 year term life cost – for different health factors

Health Condition Average Monthly Cost
Healthy Non-Smoker $15 – $25
Smoker $50 – $65
Overweight $30 – $45
Poor Health $40 – $70
*$250,000 death benefit

What happens when the 15-year term ends?

Once your 15-year term policy reaches its end, you may wonder what happens next. The bottom line –  your coverage will cease if you don’t take any action. This means if you were to pass away a day after the term ends, your beneficiaries would not receive the death benefit. However, you have options to ensure continued coverage.

The first option is to renew your policy for another term. If you still have dependents who rely on your income, this could be a sensible choice. While you won’t need to undergo a new medical exam, keep in mind that your premiums will likely increase due to age.

Alternatively, you might consider converting your term policy into a permanent one, such as whole or universal life insurance. These policies offer lifelong coverage and build cash value over time. Converting your policy might be an attractive option if your health has declined since you first purchased your term policy, as no new medical exam is required for conversion. Nevertheless, be prepared for significantly higher premiums, as permanent policies are generally more expensive than term policies.

How to buy a 15-year term life insurance policy

By following a simple five-step process, you can find a 15-year term policy that best meets your needs. This approach not only provides a clear path but also empowers you to make an informed decision.

Assess Your Financial Needs

The first step in buying a 15-year term policy is to assess your financial needs. This involves understanding your current and future financial obligations, such as daily expenses, mortgage payments, children’s education costs, and retirement plans. By doing so, you can determine the appropriate coverage amount or death benefit that will provide adequate financial support for your loved ones in your absence.


Compare Different Insurance Providers

Once you’ve determined your coverage needs, start comparing different insurance providers. Look at their financial strength ratings, customer reviews, and policy offerings. Keep in mind, the cheapest policy isn’t always the best. You want a company that’s reliable, has a strong track record, and excellent customer service.


Get a Quote and Choose a Policy

After narrowing down your options, request quotes from your top choices. Most insurance companies offer free quotes online. When comparing quotes, consider not only the premium but also the policy terms, conditions, and exclusions. Choose a policy that best fits your needs and budget.


Apply for the Policy

Once you’ve chosen a policy, it’s time to apply. This typically involves filling out an application where you’ll need to provide personal information, health history, and lifestyle details.


Review and Accept the Policy

Upon approval, the insurance company will send you a policy proposal. Review this document carefully. If everything is in order, accept the policy, sign the contract, and make your first premium payment.


Which companies have the best 15-year term rates?

This next section delves into  companies offering the best rates for 15-year terms across different categories.

15 year term cost for smokers

Company $250,000 $500,000
Nationwide $48 $135
Mass Mutual $43 $80
Transamerica $37 $72
Progressive $45 $79
Mutual of Omaha $49 $89
Prudential $65 $98

15 year term life cost for people with a poor health profile

Company $250,000 $500,000
Nationwide $27 $38
Mass Mutual $25 $40
Transamerica $20 $35
Progressive $32 $53
AAA $27 $44
Prudential $34 $56

15 year term life cost by coverage amounts

Company $250,000 $500,000
Nationwide $18 $25
Mass Mutual $14 $28
Transamerica $15 $18
Progressive $13 $17
AAA $19 $29
Prudential $38 $34

15 year term cost for people over 50

Company $250,000 $500,000
Nationwide $37 $61
Mass Mutual $38 $65
Transamerica $33 $56
Progressive $77 $138
Mutual of Omaha $35 $68
Prudential $90 $73


How much does a 15-year term policy cost?

A 15-year term life insurance policy’s cost depends on many factors, such as your age, health history, and lifestyle. Our research uncovered that policies are available for as little as $10 per month for a $250,000 face amount.

Should you get a 15-year term life policy?

Yes. A 15-year term life insurance policy provides a substantial safety net for your loved ones, ensuring they’re financially protected if the unexpected occurs.

Can you extend your 15-year term life policy?

Yes, you can extend your 15-year term life policy. Many insurance providers offer a feature known as “term conversion.” This allows you to convert your term life insurance into a permanent policy within a specified period without having to undergo an additional medical exam.

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