Term Life Insurance

What Is Term Life Insurance?

Term life insurance provides a death benefit for a specific period — commonly 10, 15, 20, 25, or 30 years. If the insured passes away during the term and the policy is in force, beneficiaries receive the death benefit. If the insured outlives the term, coverage typically ends unless the policy is renewed or converted, often at a higher premium.

Common Features

• Initial premiums are generally lower than permanent policies of comparable face amount.
• Many term policies include a conversion option to convert to a permanent policy without new medical underwriting (subject to policy terms).
• Most term policies do not build cash value.

Who It May Be Designed For

Term life is often considered by individuals who want coverage that aligns with a specific time-bound need, such as income replacement during working years, paying off a mortgage, or supporting children until they reach adulthood.

Things to Compare

• Term length and renewability
• Conversion options and conversion deadline
• Underwriting class and any required medical exam
• Riders such as accelerated death benefit, waiver of premium, or child rider
• Carrier financial strength

Talk With a Licensed Advisor

A licensed advisor can help compare term life options based on your needs and state. See also Whole Life Insurance.