May be covered
- Death benefit paid to beneficiaries if insured passes away during the term
- Fixed coverage amounts ranging from thousands to millions of dollars
- Level premiums that stay consistent throughout the term
- Conversion options to permanent coverage (varies by policy)
- Living benefits riders (on some policies)
Common exclusions
- No payout if the insured outlives the term
- No cash value accumulation
- Coverage does not continue after term without renewal or conversion
- Suicide within specified contestability period (typically first 2 years)
- Death resulting from fraud or material misrepresentation on application
Term life insurance is the most commonly purchased type of life insurance. It provides a death benefit for a fixed period — the term — and is designed to cover specific years of financial vulnerability, such as when your family depends on your income or your mortgage is outstanding.
How it works
You select a coverage amount and a term length. You pay level premiums throughout the term. If you pass away during the term, your beneficiaries receive the death benefit. If you outlive the term, the policy expires.
Common term lengths
- 10-year: Often chosen for shorter-term obligations or by older applicants
- 20-year: A common choice for parents with young children
- 30-year: Often used for long-term income replacement or new homeowners
Pricing factors
Premiums for term life are primarily determined by:
- Age at time of application
- Health and medical history
- Coverage amount
- Term length
- Tobacco use
The younger and healthier you are when you apply, the lower your premiums will be. Rates are locked in at the time of purchase for the life of the term.
Renewal and conversion
When a term expires, most policies offer:
- Renewal: You can continue coverage year-by-year, but at significantly higher premiums reflecting your current age
- Conversion: Many policies include a window to convert to a permanent policy without a new medical exam
Coverage, pricing, and availability vary by provider, plan, age, health, and policy terms. This guide is educational information only.