Insurance
Term Life Insurance
Term life provides a death benefit if you pass away during a fixed period — typically 10, 15, 20, 25, or 30 years.
How it works
You choose a coverage amount and term length. Premiums are typically level for the entire term. If you outlive the term, coverage ends — and there's no cash value to withdraw.
Common variations
- Level term — premium and death benefit stay the same.
- Decreasing term — death benefit shrinks over time, often paired with mortgage payoff.
- Return-of-premium term — refunds premiums if you outlive the term, but costs significantly more.
Conversion options
Many term policies allow conversion to a permanent policy without a new medical exam, usually within a defined window. This is valuable if your health changes during the term.
Who it tends to fit
- Parents of young children needing income replacement until kids are independent.
- Homeowners covering a mortgage payoff window.
- Anyone wanting the largest death benefit per premium dollar.
What happens at the end of the term?
Coverage ends. Some policies auto-renew at much higher rates; others let you convert to a permanent policy without a new exam.
Can I have multiple term policies?
Yes — "laddering" multiple terms (e.g., 30, 20, and 10 year) can match coverage to declining need over time and lower total cost.
Are premiums guaranteed?
On level term, yes — for the entire initial term. After the term ends, renewal premiums (if offered) typically rise sharply.
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