TERM LIFE INSURANCE

Term life insurance: the most coverage for the lowest cost

Lock in level premiums for 10, 20, or 30 years and protect your family’s income during the years it matters most. A healthy 35-year-old can often cover $500,000 for less than the price of a dinner out.

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Reviewed by licensed agents Updated for 2026 No spam, ever

Key takeaways

Term life covers you for a fixed period — usually 10, 20, or 30 years.
Premiums stay level for the whole term and are the cheapest coverage you can buy.
Ideal for replacing income, paying off a mortgage, or covering the years until your kids are grown.
There is no cash value — if you outlive the term, coverage simply ends (you can renew or convert).
A healthy 35-year-old can often get $500,000 of 20-year term for $25–$35 a month.

The basics

What is term life insurance?

Term life insurance is the simplest, most affordable type of life insurance. You choose a coverage amount (the death benefit) and a length of time (the term). If you pass away during that term, your beneficiaries receive the death benefit as a tax-free lump sum. If you outlive the term, the policy ends.

Because it has a defined end date and builds no investment value, term insurance costs a fraction of permanent policies like whole life. That makes it the right fit for the most common reason people buy coverage: protecting their family during the working years when others depend on their income.

How it works

How term life insurance works

Pick a term length — match it to your biggest obligation (e.g., a 30-year mortgage or the years until your youngest turns 18).
Pick a coverage amount — most experts suggest 10–12× your annual income.
Lock in level premiums — your rate is fixed for the entire term and never rises.
Beneficiaries are paid tax-free — the death benefit generally passes to them income-tax-free.
At the end of the term — let it lapse, renew annually, or convert to permanent coverage without a new medical exam.

Pros

Lowest cost per dollar of coverage
Simple and easy to compare
Level, predictable premiums
Convertible to permanent coverage later
Large death benefits are affordable while young

Cons

Coverage ends when the term expires
Builds no cash value or investment
Renewing after the term gets expensive
Premiums are based on your health at purchase

Sample rates

What does term life cost?

Rates depend on your age, health, coverage amount, and term length. The sample monthly premiums below show how affordable term can be for healthy applicants — and how much rates climb the longer you wait to buy.

SAMPLE RATES · ILLUSTRATIVE ONLY

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Quickly see how sample monthly premiums compare across policy types. Real quotes vary based on age, health, and coverage.

Term life insurance FAQ

How much life insurance do I really need?

A common rule is 10–12× your annual income, but the better approach is the DIME formula: Debts + Income replacement + Mortgage + Education costs. Subtract existing savings. For most families with young kids, that lands somewhere between $500K and $1M of term coverage.

Is term or whole life better for a young family?

For most young families, term life is the better fit. It’s 5–10× cheaper than whole life and covers the years when you most need protection — while children are at home and the mortgage isn’t paid off. Whole life only makes sense for specific estate-planning, lifelong-dependent, or high-net-worth cases.

Can I get life insurance with a pre-existing condition?

Yes — but the type of policy and your premium will depend on the condition. Well-managed conditions (controlled diabetes, treated high blood pressure) usually qualify for standard term policies, sometimes at a higher rate. For more serious conditions, guaranteed-issue or simplified-issue no-exam policies skip the medical underwriting entirely.

What happens if I outlive my term policy?

The policy expires and the coverage ends with no payout. Most term policies offer a conversion option — usually until age 65 — that lets you swap to a permanent policy without a new medical exam. Many also offer renewal, but renewal premiums are much higher because they reset to your current age.

Are the sample rates on this site real quotes?

No. All rates shown are illustrative and educational only. Your real premium depends on age, health, smoking status, state, and the insurer’s underwriting. Use our sample tables to understand ranges, then get a binding quote from a licensed broker or insurer.