Term Life Insurance

What term life insurance is

A term policy is a contract: you pay a level premium, and if you pass away during the term, the carrier pays your beneficiary a tax-free death benefit. There is no cash value component, which is exactly why the price is so low relative to the coverage amount.

When the term ends, most policies can be renewed annually at a higher rate or converted to permanent coverage without a new medical exam. That conversion privilege is one of the most overlooked features in the market, and it is something we always check before recommending a carrier.

Who it's for

Term is the right answer when you have a temporary but very large need. A 34-year-old with two young children and 26 years left on a mortgage does not need lifelong coverage — they need enough coverage to carry the family through the next two decades if something happens.

• Income replacement for 10–30 years
• Mortgage and debt payoff
• College funding for children
• Key-person and buy-sell coverage for business owners

How pricing works

Carriers price term life on age, gender, tobacco use, health history, family history, driving record, and the coverage amount and term length you choose. Because we are independent, we can shop the same application across many A-rated carriers — and health conditions that one carrier penalizes heavily may be treated far more generously by another.

Rates rise meaningfully every year you wait. Locking in a term policy at 35 instead of 45 can cut the lifetime cost of the same coverage roughly in half.

How to choose a term length

Match the term to the obligation. If your youngest child is two, a 20-year term carries you to their college years. If you have 27 years left on a mortgage, a 30-year term keeps the house safe. Buying a term that ends before the need does is the single most common mistake we correct.