- There’s no death benefit paid if death occurs after the 20-year term life insurance policy ends.
- A 20-year term life insurance policy can often be renewed or converted to permanent insurance.
Published on : April 8, 2025 | Reviewed by Catherine Malone
What is 20-year term life insurance and how does it work?
A 20-year term life insurance policy offers straightforward, affordable insurance coverage and financial protection for your beneficiaries for a set period of 20 years. If the insured person dies within that time, the beneficiaries will receive a lump sum tax-free payment called the death benefit.
Here's an overview of how these policies typically work:
Fixed Term
Coverage lasts for 20 years from the policy start date.
Fixed Premiums
Premiums remain the same for the entire 20-year term.
Guaranteed Death Benefit
Death benefit is guaranteed as long as premiums are paid on time.
No Cash Value
No cash value component.
Benefits of 20-year term life insurance policies
Affordable
Affordable coverage for a set period of time.
Flexible
Ideal for covering specific financial obligations (e.g. mortgage, taxes at death, children’s education, small business, etc.)
More coverage for less
Can provide a large amount of coverage at a lower cost than permanent life insurance.
Application process for a 20-year term life insurance policy:
To obtain a 20-year term life insurance policy from Sun Life, you'll need to:
- Get a quote online or through an advisor.
- Complete an application form that asks for personal and health information.
- You may need to undergo a medical exam.
- Wait for underwriting approval.
How do premium payments work for 20-year term life insurance policies?
- Premiums are usually paid monthly or annually.
- Failing to pay premiums could result in your policy ending, which means you’ll lose your insurance coverage.
What happens after a 20-year term life insurance policy expires?
Before the 20-year term ends, you’ll have several options. You can let the policy expire and buy a new life insurance policy (which would require a new application and underwriting). Or, depending on your current term policy, you may be able to:
- Renew for another term ,
- Convert to a longer term life insurance policy (e.g. 30 years, 40 years), or
- Convert to a permanent life insurance policy.
* Keep in mind, your premiums will likely rise when you renew or convert to another policy. Also, some term policies automatically renew for the same term length if no other action is taken.
Is a 20-year term life insurance policy right for you?
The exact type of insurance you need depends on your individual circumstances, financial goals and obligations. It's important to carefully consider your long-term needs when choosing this type of policy, as coverage will end after 20 years unless renewed or converted. To find out which life insurance policies (there may be more than one) meet all of your needs, connect with an advisor near you.
Additional resources
This information is meant for educational and illustrative purposes only. Some conditions, exclusions and restrictions apply.