Life Insurance: What is a Term?

A term is the length of coverage offered by a life insurance policy.

Term life insurance is temporary protection that offers coverage for a set period of time.

Terms available for term life coverage usually include 5, 10, 15, 20, 25, or 30 years as options for life insurance.

With term insurance, if you pass away during the term of your policy, the death benefit is paid to your beneficiary.

And, if you outlive the duration of your policy term, the coverage expires with no payout on your policy.

The shorter the term of your coverage, the lower your annual cost of life insurance.

Term Life Insurance for How Long?

How long does a term life insurance policy last?

Term life is temporary coverage providing life insurance protection for the "term" of your policy.

You may choose a "term" of 10, 15, 20 or 30 years from most term life companies.

With level term life insurance you have coverage for the term (duration) you choose, and your premiums remain the same each year for the length of your term.

In addition, the amount of life insurance you select will remain level throughout the entire term of your term life policy.

Term life is very popular because it offers the lowest prices on life insurance lasting for 30 years or less.

So, if you are on a budget, need the most life insurance for your money, have a family, own a home, or need to provide protection until the mortgage is paid off or the kids are grown up, term life may offer a good option for life insurance.

Get a Free Term Life Insurance Quote

How do I decide the number of years (term) to choose for my life insurance policy?

Choosing the duration of your term life policy with an initial rate guarantee is easy.

You just match the period of time you'll need life insurance protection to the duration of the initial rate guarantee period.

For example, if you're youngest child is 5 and you need life insurance until your kids are grown and on their own, you'll want to choose a term life policy with coverage for a term of at least 20 years.

Or, if you have a 30 year mortgage and want protection until the mortgage loan is fully paid off, you'll want a term of 30 years.

Learn more about how term life policies work