Temporary need

Term life insurance

A set amount of coverage for a set number of years, at the lowest cost per dollar of death benefit you can buy. If you die during the term, your beneficiaries get the money. If you outlive it, the coverage ends.

Get term quotes Compare to permanent

Lowest cost per dollar 10 to 30 year terms

Common term lengths: 10, 15, 20, 25, and 30 years
Typical coverage amounts: $100,000 to $2 million and up
Builds cash value: No — it is pure death benefit
Best fit: Mortgage years, kids at home, income replacement

How it works

You choose a coverage amount and a term length. The insurer prices it off your age, health, tobacco use, and the term you picked. With level term — the standard product — your premium stays flat for the entire term.

At the end of the term the policy expires. Some policies let you renew annually at sharply higher rates, which is rarely a good deal. The better move is buying a term long enough to outlast the need in the first place.

The variations

Level term. Flat premium, flat death benefit, fixed number of years. This is what most people mean by term insurance.
Annual renewable term. Renews each year at a higher price as you age. Occasionally useful for a very short, defined gap.
Decreasing term. The death benefit shrinks over time, often tracking a mortgage balance. Cheaper, but level term is usually the better value.
Return of premium. Refunds your premiums if you outlive the term, at a much higher cost. You're lending the insurer money interest-free to get your own money back.

The conversion rider matters more than people realize

Most quality term policies include a conversion privilege letting you convert some or all of the coverage to a permanent policy from the same carrier without a new medical exam. If your health changes during the term, that rider is what protects your ability to keep coverage. Conversion deadlines and eligible products vary by carrier, so ask before you buy, not after.

How much to buy: add up your mortgage balance, other debts, the income years your family would need to replace, and future education costs. Subtract existing savings and coverage. The 10–12× income rule gets you in the neighborhood; the itemized version is more accurate.

What drives your rate: Age, tobacco use, height and weight, blood pressure and cholesterol, family history, prescription history, driving record, and hazardous hobbies
Exam or no exam: Accelerated underwriting can skip the exam for many healthy applicants. No-exam policies sometimes cost more, sometimes don't — it depends on the carrier
Riders worth asking about: Accelerated death benefit (often included), waiver of premium, child rider, conversion privilege

Term is the right answer when…

You have a mortgage

Match the term to the years left on the loan so the house is covered if your income disappears.

You have young children

A 20-year term buys coverage through the years your kids actually depend on your income.

You're the primary earner

Replacing lost income is a temporary need that ends at retirement. Term matches that shape.

Budget is the constraint

Term buys the most death benefit per dollar. Being underinsured with permanent coverage is worse than being fully insured with term.

When term isn't enough: term expires on a set date, so it won't cover final expenses that come later in life. If you want coverage that never expires and is there whenever it's needed, final expense is built for that.

See what term coverage would cost you

Answer a few questions and a licensed agent brings you quotes from carriers that price your health profile well.

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