Term life insurance explained
By Colson · Updated June 13, 2026
Term life insurance covers you for a fixed period — usually 10, 20 or 30 years — and pays a tax-free death benefit if you die during that term. It's the cheapest way to protect your family during the years they depend on your income.
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Estimate your term life rate →How does term life insurance work?
You pick a coverage amount (the death benefit) and a term length, then pay a level monthly premium that stays the same for the whole term. If you pass away during the term, your beneficiaries receive the death benefit tax-free. If the term ends while you're alive, coverage stops — there's no payout or cash value, which is exactly why term is so affordable.
What term length should you choose?
Match the term to how long others depend on your income: a 20-year term to raise children, or a 30-year term to cover a new mortgage. A longer term costs more but locks in today's rate for longer. Many policies let you convert to permanent coverage later without a new medical exam.
What affects your rate?
Age and health are the biggest factors — buying younger and healthier locks in lower rates. Tobacco use roughly triples premiums. Coverage amount, term length, gender and family medical history also matter. Healthy applicants who shop around pay the least.
Frequently asked questions
Is term life insurance worth it?
For most families with dependents, yes — it provides large coverage for a low premium during the years your income is needed. A healthy 35-year-old can often get $500,000 of 20-year coverage for the cost of a couple of streaming subscriptions.
What happens when term life insurance expires?
Coverage ends with no payout. You can let it lapse if you no longer need it, buy a new policy at older-age rates, or convert to permanent coverage if your policy allows.
How much term life insurance do I need?
A common approach is the DIME method — cover your debts, ~10 years of income, your mortgage and education costs, minus existing coverage. Use the life insurance needs calculator to get a number.
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