Term life insurance is affordable life insurance coverage designed to provide financial protection for temporary needs. Term life insurance only lasts a set period of years. Your options often ranged from 10 to 35 years—until now.

Legal & General America (also known as Banner Life) just released a 40-year term product. This is a great opportunity for individuals who would like affordable financial protection for their families well into their retirement years. Let’s take a look at some important details about this new product.

Things to Know About the 40-Year Term Policy

  • If you are a non-smoker, the 40-year term option is available to people age 45 and younger.
  • If you use tobacco, the 40-year term option is available to people age 40 and younger.
  • Banner’s 40-year term product (and their new 35-year term product) is not available if you live in New York.

» Compare: Get your 40-year term quote

The Benefits of a 40-Year Term Policy

Americans are living longer and working longer in order to meet financial needs. In today’s economy, many Americans carry debt even into their retirement years. A 40-year term policy allows you to protect your loved ones longer.

Overall, Millennials, born roughly between 1981 and 1996, have been hesitant about buying life insurance. They would prefer a sure thing, which term life insurance is not since it’s temporary, but cannot afford permanent life insurance. A 40-year term policy is a great compromise. It’s much more affordable than permanent insurance and because it lasts quite a while, Millennials can provide financial protection for their loved ones well into their 60s and 70s.

Until now, if you had long-term life insurance needs you had essentially two options before you:

  1. Buy a permanent life insurance policy to make sure you had coverage your entire life.
  2. Buy a 10-30 year term policy and then later on simply buy another term policy if your protection needs continued.

Each option has its pros and cons. With option A, you have coverage your entire life, access to cash values, and possibly dividends, but you’re paying substantially high premiums each month. With option B, you have affordable coverage but if you need to buy another policy later on, the term life insurance may not be so affordable any more if you’re facing new health issues—not to mention you have aged.

Enter the 40-year term policy. A 40-year term option may not be permanent, but for the budget-conscious buyer, it can make a huge difference to both you and your family.

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