What Is the Select‑20 Policy?
The Select‑20 is a term life insurance product offered by State Farm that provides coverage for a specified period, typically 20 years. It is designed for policyholders who need temporary protection, such as during a mortgage term or while raising children.
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Core Features
Key attributes of the policy include:
- Term Length: 20 years, after which coverage ends unless renewed.
- Death Benefit: A fixed amount payable to beneficiaries upon the insured's death within the term.
- Premiums: Fixed or level premiums that remain unchanged throughout the term.
Who Is It For?
The Select‑20 suits individuals who expect their financial obligations to diminish after a set period. Common examples are:
- Homeowners with a 20‑year mortgage.
- Parents who anticipate children becoming financially independent.
- Business owners protecting a key employee for a fixed project duration.
How Does It Work?
When you apply, State Farm evaluates your health, age, and lifestyle to determine eligibility and premium rates. Once approved, you pay the agreed premium each month or year. If you pass away during the 20‑year window, the beneficiary receives the death benefit. If you outlive the term, the policy expires and no benefit is paid.
What Influences the Cost?
Premiums are influenced by:
- Age at application – younger applicants pay less.
- Health status – chronic conditions can raise rates.
- Smoking status – smokers typically face higher premiums.
- Coverage amount – larger death benefits increase costs.
Is There a Renewal Option?
Some policyholders can renew the policy at the end of the 20 years, but renewal terms often involve higher rates and may require a new medical exam.
Comparing with Other Term Policies
Compared to a 10‑year or 30‑year term, the Select‑20 offers a middle ground. It balances affordability with a longer protection period, making it a common choice for those seeking moderate-term coverage.
Key Considerations Before Buying
Before purchasing, check:
- Financial goals: Align the coverage period with future obligations.
- Budget: Ensure monthly premiums fit your cash flow.
- Renewal terms: Understand the conditions if you wish to extend coverage.
Where to Get More Information
Contact a State Farm agent or visit the official State Farm website. Request a personalized quote and discuss how the Select‑20 policy fits your unique situation.