How it works · Term Life Insurance
Protection for the years that matter most.
Term life insurance provides a death benefit for a set period — commonly 10, 15, 20, or 30 years. If the insured person passes away during the term, the policy pays a tax-advantaged benefit to the beneficiaries they chose. If the term ends and the policy is not renewed or converted, coverage stops.
Coverage length10–30 year terms
Cash valueNone
Typical costLowest per dollar of coverage
How it works
- You choose a coverage amount and a term length that matches a specific need, such as raising children or paying off a loan.
- Premiums are often level (they stay the same) for the full term.
- Many policies offer a conversion option that lets you switch to permanent coverage later without a new medical exam, subject to policy terms.
- Some carriers offer optional riders, such as accelerated benefits for terminal illness or a child term rider.
Often a good fit for
- Young families who want the most coverage for their budget
- Homeowners protecting a mortgage balance
- Parents who want to replace income until children are grown
- Business owners covering a loan or partnership agreement
Things to consider
Term life does not build cash value, and premiums to renew after the term ends are usually much higher. Choosing the right term length is key.