Term life is the simplest, most affordable form of life insurance. You choose a term and a death benefit, pay a level premium, and your beneficiaries receive the benefit if you pass during that term.
How term life works
Common terms are 10, 20, or 30 years. Premiums are low because the policy is temporary and builds no cash value. If you outlive the term, coverage ends (though many policies can be renewed or converted).
When term makes sense
Term is ideal for temporary, high-need periods: replacing income while raising children, covering a mortgage, or protecting a business loan. It delivers the most death benefit per dollar.
Term vs. permanent
Term covers a season; permanent coverage like whole life or an IUL lasts for life and builds cash value. Many families use term now and add permanent coverage as goals evolve.
How much does term life cost? +
Far less than permanent insurance — a healthy person can often get substantial coverage for a modest monthly premium. Cost rises with age, term length, and health.
What happens when the term ends? +
Coverage ends. Many policies let you renew (at a higher rate) or convert to permanent coverage without a new medical exam — check your policy.
Does term life build cash value? +
No. Term is pure protection with no cash value. If you want a living benefit, consider permanent coverage like whole life or an IUL.