Term Life Insurance, Explained in Plain English
Not sure how much coverage you need? Our free calculator adds it up in about 2 minutes. It doesn’t ask for your name, email, or phone.
How Term Life Insurance Works
Pick your coverage
You pick a coverage amount and a term length.
Pay premiums
You pay premiums for the length of the term.
If you die during the term
Your beneficiaries receive the death benefit.
If you outlive the term
The coverage ends, unless you renew or convert it.
That’s it. No investment piece, no cash value in most policies. Just protection for the years you need it.
How Long Should Your Term Be?
Match the term to the need:
| Your need | Term to consider |
|---|---|
| Until the kids are grown | Long enough to cover until your youngest is independent |
| Paying off a mortgage | The years left on your loan |
| Replacing income until retirement | Until you plan to retire |
| A specific debt or business loan | The length of the loan |
Not sure how much coverage you need? Try how much life insurance do I need.
Our free calculator adds it up in about 2 minutes. It doesn’t ask for your name, email, or phone.
Types of Term Life Insurance
Level term
Your premium and coverage stay the same for the whole term. This is the kind most people mean when they say “term life.”
Renewable term
Lets you continue coverage when the term ends, even if your health has changed. The new premiums are usually higher.
Convertible term
Lets you trade your term policy for a permanent, cash value policy during a conversion period, even if you’re no longer in good health.
Non-renewable term
Ends at the end of the term. To keep coverage, you’d need to apply for a new policy.
What Happens When Your Term Ends?
You’ve got three paths:
Let it end
If your kids are grown and your mortgage is paid, you may not need coverage anymore. That’s a good outcome.
Renew it
If your policy is renewable, you can keep coverage, usually at a higher price each year.
Convert it
If your policy has a conversion option, you can switch to permanent coverage without a new medical exam. Check the deadline in your policy.
Our free calculator adds it up in about 2 minutes. It doesn’t ask for your name, email, or phone.
Term vs Whole Life
Term is usually much cheaper for the same coverage and fits needs that end. Whole life lasts your entire life and builds cash value, but costs more. Read the full comparison: term vs whole life.
FAQs
What is term life insurance?
Life insurance that covers you for a set number of years. If you die during the term, your beneficiaries get paid.
Does term life insurance build cash value?
Most term policies don't.
What happens if I outlive my term life policy?
The coverage ends, unless your policy lets you renew it or convert it to permanent coverage.
Can I convert term life to whole life?
Many term policies let you convert to a permanent policy during a conversion period, even if your health has changed. Check your policy for the details.
Is term life insurance worth it?
For many families, yes. It usually gives the most coverage for the money during the years people depend on your income.
Our free calculator adds it up in about 2 minutes. It doesn’t ask for your name, email, or phone.
