The short answer is that it depends primarily on your age and your health. If you’re anywhere from 18 to 35, your age doesn’t affect your prices, so reapplying for the 20-year policy will almost always be cheaper, since a shorter term length means less risk for the insurer. 20 year term life insurance cost.
After age 35, your baseline prices will get higher year over year, so getting a lower price becomes less likely. If you’re still as healthy as you were 10 years ago, the closer you are to 35, the better your odds of getting a lower price with a shorter policy.
However, it’s not impossible for people 40 and up to reapply for lower prices - that’s where your health comes in.
If, for example, you applied for your original policy as a smoker, and have been tobacco-free for the last few years, you might now be eligible for non-smoker prices, which can cut your baseline costs by nearly half.
Low cost term life insurance
Another common circumstance we see is a person who got a policy shortly after a medical scare like a heart attack or a successful battle with cancer coming back to reapply after a few healthy years. In the years directly following that kind of scare, insurers raise their prices until you prove that you’re completely healthy again.
If you’ve been remission-free for a few years after the health scare, you might be able to get better prices, but the odds are worse than for someone who’s quit smoking, since an insurer will never fully forget about a heart attack or cancer in your history.
Because you need to accept a life insurance offer in order for it to be activated, if you think that your prices may have dropped (and don’t mind the hassle of another application), you could reapply for coverage, see what the final price for your policy could be, and then decide whether you’d like to swap in your new 20-year policy or keep your original 30-year policy.
If that’s something you’d like to try, feel free to go to Quotacy and run a quote. We’d be happy to help you through another application process, even if you don’t end up accepting the new policy.