Loading...
Home>>Term Life Insurance>>5 year rates
5 year rates 2016-11-01T12:29:19+00:00

5 Year Term Life Insurance

Short term obligations and debts can be covered  by a five year term life insurance policy.  It can be difficult to find affordable 5 year term life insurance rates due to only a few companies offering this type of policy.  Additionally, finding a company that will offer the death benefit you may need can be tough.  For example, State Farm will offer a 5 year term plan, but the downside is a $99,000 maximum death benefit.  When you work with us, you will have no such limitations.

We help you find the best term life insurance by shopping the top life insurance companies in the US.  You can also call us and have an agent do the shopping for you with a 5 minute phone call.  To get the best price on a five year term policy, you will need an agent with experience, which we definitely have. 

Find out more about what term life insurance is here.

 5 year term life insurance

Instant Quotes

Want to see 5 year term rates, side by side?

Instant Quotes

There may be better options than a five year term.

Annual Renewable Term

If you’re looking for a five year term policy, it probably means you need short term life insurance. Depending on the length of time that you will need coverage, an annual renewable policy can sometimes be cheaper than a five year plan.  One of our agents can quickly run quotes and compare the rates to see what the best option may be.  An annual renewable term life insurance policy is only recommended if you need the policy to secure a short term obligation, like a 2 or 3 year loan.

A Better Option

Typically, you can find a better price on a 10 year term than you can for a 5 year term policy.  You may be wondering how that’s possible; it’s simple math, we have around 40 life insurance companies who will offer a 10 year policy versus only a few life insurance companies who will offer 5 year term policy.  Most companies just don’t have an appetite for the 5 year term policy as the expenses to write the policy outweigh the return on investment for the life insurance company.

Look at how the cost can differ for a $500,000 term

As you get older, a five year policy could make sense, but when you’re young it will never be the best option, especially when it comes to cost.

 

Annual Renewable

$1469monthly
[pricing_row]Male 36[/fusion_pricing_row][pricing_footer]Non Smoker Preferred Rate[/fusion_pricing_footer]

Five Year Term

$2288monthly
[pricing_row]Male 36[/fusion_pricing_row][pricing_footer]Non Smoker Preferred Rate[/fusion_pricing_footer]

Ten Year Term

$1555monthly
[pricing_row]Male 36[/fusion_pricing_row][pricing_footer]Non Smoker Preferred Rates[/fusion_pricing_footer]

Five year term FAQ

Do the rates remain level for five years?
Yes, the rates do remain level. Once you get approved by the life insurance company and your policy is in-force, your rates get locked in for five years. So, even if you get sick during those 5 years, the rates will still be locked in for the entire term. However, if you do get sick any time during the policy period, it will be after the 5 years is up when you will run into problems. So, make sure you look at all your options before buying.
What happens after the five years is up?
When the policy runs its course and the five years are up, the insurance company will offer you an annual renewable term policy. When you buy the policy, a illustration will be used to show you how much the premiums cost after the five years are up. This renewable term will be so expensive that most insureds will not be able to keep the policy. The policy is designed that way because the life insurance company wants you to only keep the policy for the length of time for which you applied.
Can the policy be renewed after the term is up?
Sort of. You have a few options when it comes time to renew your policy. The best option, if you are healthy, is to apply for a new term policy. If you want to lock in the rates for an additional five years, you will have to reapply and prove that you are still insurable. Or, you may have a conversion option where you can convert the term to a permanent policy.  Remember, you will also be five years older and your new rate will be at your attained age. This is why we recommend buying a longer term and locking in the rate while you are healthy and young.
Can I get a 5 year term life policy with no exam?
No. You will have to take a Paramed exam when you buy a five year term policy. We do have multiple life insurance companies that offer a term policy with no exam. Like we stated above, there are only a handful of life insurance companies that offer a 5 year term, and none that offer life insurance without a medical exam. But don’t worry, we can get you quotes for a term without an exam.
Is State Farm a Good Option?
State Farm does offer a 5 year term policy but it comes with some limitations.  They only offer up to a $99,000 death benefit.  That is not a good option if you need to secure a short term million dollar loan.  That is where we come in; we have carriers that do not offer these limitations. With us, you will get a whole lot more coverage for a lot less dollar.

5 Year Term Rates For a Male

Preferred Best Non-smoker Rate Chart

These term rates are subject to underwriting.

Age$100,000$250,000$500,000
40$11$15$22
45$13$19$33
50$17$27$46

5 Year Term Rates For a Female

Preferred Best Non-smoker Rate Chart

These term rates are subject to underwriting.

Age$100,000$250,000$500,000
40$10$13$19
45$11$17$28
50$21$23$37

Want to see the rates from the top companies in the US?

Compare Instant Quotes