Term life covers you for a set number of years, like 10, 20, or 30. If you die in that time, your family gets the money.
Who it fits
Families who need a lot of coverage for a while, like until the house is paid off or the kids are grown.
- Who buys it
- Ages 18 to 65
- Medical exam
- SometimesDepends on age, amount and company
- Ages
- Most companies sell term only up to a certain age, usually 70 or 80.
What to know before you buy
Term is the simplest and least expensive type of life insurance.
Terms can run 1 year or 5 to 30 years or more.
Most term policies have no cash value. You pay for the death benefit only.
You may be able to renew after the term, but the price is often higher.
Many policies let you switch to permanent coverage with no health questions, usually up to about age 65.
Common questions
What happens when my term ends?
Coverage stops. Some policies let you renew at a higher price or convert to permanent coverage.
Is term cheaper than whole life?
Yes. Term costs less than permanent coverage for the same death benefit.
How long should my term be?
Match it to your needs. For example, the years left on your mortgage or until your kids finish school.
Can I cancel if I change my mind?
Most policies have a free look period, at least 10 days, to cancel for a full refund.
