Term Life Insurance
The most affordable way to protect your family. Rates from $15/month.
How Term Life Insurance Works
Term life insurance provides a death benefit for a specific period — typically 10, 15, 20, 25, or 30 years. You pay a fixed premium each month. If you die during the term, your beneficiaries receive the full death benefit tax-free. If you outlive the term, coverage ends.
It's the simplest, purest form of life insurance: you're buying protection, not an investment product. This is why term premiums are dramatically lower than whole or universal life.
Average Term Life Insurance Rates
Monthly rates for a $500,000, 20-year term policy for healthy non-smokers:
| Age | Male | Female | Male (Smoker) | Female (Smoker) |
|---|---|---|---|---|
| 25 | $21/mo | $18/mo | $61/mo | $51/mo |
| 30 | $23/mo | $20/mo | $72/mo | $60/mo |
| 35 | $27/mo | $23/mo | $88/mo | $71/mo |
| 40 | $38/mo | $33/mo | $130/mo | $102/mo |
| 45 | $60/mo | $51/mo | $205/mo | $158/mo |
| 50 | $95/mo | $79/mo | $338/mo | $255/mo |
Sample rates for illustration. Actual rates vary by carrier and health classification.
Term vs. Whole Life Insurance
| Feature | Term Life | Whole Life |
|---|---|---|
| Coverage period | 10–30 years | Lifetime |
| Monthly cost ($500K) | $22–$95 | $300–$500+ |
| Cash value | None | Yes, grows tax-deferred |
| Premium flexibility | Fixed | Fixed |
| Best for | Income replacement, mortgage protection | Estate planning, final expenses |
Pros and Cons of Term Life Insurance
Pros
- ✓ Lowest monthly premiums of any life insurance type
- ✓ Simple, easy to understand
- ✓ Flexible coverage amounts and term lengths
- ✓ Can be converted to permanent coverage at most carriers
- ✓ Level premiums — rate never changes during the term
- ✓ Death benefit is tax-free to beneficiaries
Cons
- ✗ No cash value accumulation
- ✗ Coverage expires at end of term
- ✗ Renewal premiums are much higher (based on new age)
- ✗ Can be difficult to qualify if health declines
- ✗ No living benefits (unless riders are added)
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Frequently Asked Questions
What happens when term life insurance expires?
When your term ends, coverage simply stops. Most carriers offer a renewal option (at much higher rates) or conversion to permanent coverage. If you're still healthy, it's usually cheaper to apply for a new term policy.
Is term life insurance worth it?
For most families, yes. Term life provides substantial coverage at the lowest possible cost during your peak earning and family-raising years. If you invest the premium savings vs. whole life, you'll likely come out ahead financially.
What is the best term length for life insurance?
Match the term to your longest financial obligation. If you have a new 30-year mortgage and young children, choose 30 years. If your goal is income replacement until retirement, subtract your current age from 65 to find the right term.
Can I get term life insurance without a medical exam?
Yes. Many carriers offer simplified issue or no-exam term policies up to $2 million. These are approved based on a health questionnaire and database checks (prescription history, MVR, MIB). Premiums are typically 10–20% higher than fully underwritten policies.