Life insurance
Term life insurance
In plain EnglishCoverage for a set number of years. If you die during that time, your family gets a lump sum of money.
What it is
Term life insurance covers you for a fixed period — commonly 10, 15, 20, 25 or 30 years. If you pass away during the term, the people you name (your beneficiaries) receive the death benefit, which is generally not subject to income tax.
If you outlive the term, the coverage simply ends and so do the payments. Because it’s built for a specific window and doesn’t build cash value, term is usually the least expensive way to get a large amount of protection.
Term is for people in reasonably good health. To qualify you’ll answer health questions — and sometimes take a quick exam — and your health decides whether you’re approved and what you pay. That’s why the best time to lock in term is while you’re healthy.
How it works
Step by step.
- Pick an amount and a lengthEnough to replace your income and pay off what your family would owe, for as long as they’d need it — until the kids are grown or the mortgage is paid.
- Qualify with your healthYou’ll need to be in reasonably good health. Some policies need a quick exam; many approve you from health questions and a records check.
- Your price is lockedThe premium stays the same for the whole term.
- At the end of the termCoverage ends — or, on many policies, you can convert to permanent coverage without new health questions before a deadline, or renew at a higher price.
The honest version
What’s good, and what to watch.
Every product has trade-offs. We’d rather you hear them from us now than discover them later.
What we like
- The most coverage for the least money
- Simple to understand
- Premiums don’t change during the term
- Many policies can be converted to permanent coverage later
What to watch
- You need to be in good health to qualify
- Coverage ends when the term ends
- No cash value to borrow against
- Renewing after the level term gets expensive quickly
- Buying new coverage later means qualifying again at an older age
Frequently asked questions
Straight answers.
What happens if I outlive my policy?
The coverage ends and nothing is paid out — that’s why term is affordable. Many policies let you convert to permanent coverage before a deadline, without new health questions.
How long should my term be?
Long enough to cover your biggest obligations: until your youngest is on their own, or until the mortgage is paid off. Some families combine two policies of different lengths.
Is the payout taxed?
Life insurance death benefits are generally received free of income tax by beneficiaries. Ask a tax professional about your situation.
Often paired with
Related coverage.
Mortgage protection
Life insurance sized to your mortgage, so your family keeps the house if something happens to you.
Learn more →Living benefits
Use part of your death benefit while you’re alive if a serious illness hits.
Learn more →Whole life insurance
Coverage for your whole life, with premiums that never go up and cash value that never earns a negative rate.
Learn more →General information, not tax or legal advice. Features, availability and rules vary by insurance company, product and state — we’ll walk you through the details of any policy before you apply.
Is this right for you?
Tell us a little about your family and goals. We’ll compare your options side by side — no pressure, no obligation.