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Ethos
Median time for no-exam application approval
Instant
Maximum no-exam coverage amount
$2 million
Term lengths available
10, 15, 20, 30 years
On Ethos Life's Website
Instant
$2 million
10, 15, 20, 30 years
The Best Term Life Insurance Companies
GREAT FOR CHOICES OF TERM LENGTHS
Corebridge Financial (formerly AIG Life & Retirement)
5.0
Our ratings take into account the historical performance of a company's cash value life insurance policies. All ratings are determined solely by our editorial team.
Policy name
Select-a-Term
Minimum face amount
$100,000
Level term lengths available
10, 15, 20, 25, 30 or 35 years
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Select-a-Term
$100,000
10, 15, 20, 25, 30 or 35 years
Why We Picked It
Corebridge’s Select-a-Term policy generally has very competitive rates that will appeal to any term life insurance buyer and a large number of term options between 10 and 35 years.
More: Corebridge Financial Life Insurance Review
Pros & Cons
- Very low term life insurance rates.
- High maximum issue age of 80.
- Term life insurance buyers can customize a level term length between 10 and 35 years, such as 18 years.
- To use the accelerated death benefit rider, you must have a life expectancy of 24 months or less—many competitors require 12 months or less.
- High customer complaint ratio for things like claim handling delays, billing issues and surrender problems.
Life Insurance Riders Available
- Accidental Death Benefit Rider
- Child Life Insurance Rider
- Waiver of Premium Rider
BEST COST FOR $1 MILLION TERM LIFE
Pacific Life
5.0
Our ratings take into account the historical performance of a company's cash value life insurance policies. All ratings are determined solely by our editorial team.
Policy name
PL Promise Term
Minimum face amount
$50,000
Level term lengths available
10, 15, 20, 25 or 30 years
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PL Promise Term
$50,000
10, 15, 20, 25 or 30 years
Why We Picked It
Pacific Life is strong across the board in our analysis thanks to its low rates and top-notch coverage features. If you’re seeking $1 million in term coverage, Pacific Life offers especially low rates.
More: Pacific Life Insurance Review
Pros & Cons
- Low average term life insurance cost among the companies we analyzed. Offers especially low rates for $1 million term life insurance.
- The policy is guaranteed renewable until age 95.
- High maximum coverage amount of over $10 million.
- If you choose to convert the term life policy, you’re limited to a universal life policy.
Life Insurance Riders Available
- Accelerated Death Benefit Rider
- Children’s Term Life Insurance Rider
- Disability Waiver of Premium Rider
Great For Long Level Term Lengths
Protective
5.0
Our ratings take into account the historical performance of a company's cash value life insurance policies. All ratings are determined solely by our editorial team.
Plan name
Classic Choice Term
Minimum face amount
$100,000
Level term lengths available
10, 15, 20, 25, 30, 35 or 40 years
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Classic Choice Term
10, 15, 20, 25, 30, 35 or 40 years
Why We Picked It
Protective’s Classic Choice term life policy is notable for its low rates and superior choices of level term lengths during which you lock in the rate.
More: Protective Life Insurance Review
Pros & Cons
- Level term lengths include 35- and 40-year choices. Many competitors have 30 years as their longest level term period.
- The policy can be renewed until age 95 (at higher rates every year after the level term period ends).
- Choice of up to 8 permanent life insurance policies from Protective if you choose to convert the term life.
- Protective puts tighter restrictions than many competitors on using the accelerated death benefit: You can access only 60% or $1 million (whichever is less) of the death benefit. And you must have a life expectancy of no more than six months, while many competitors use 12 months.
Life Insurance Riders Available
- Accelerated Death Benefit Rider
- Children’s Term Life Rider
- Accidental Death Rider
- Waiver of Premium Rider
- Income Provider Option for Endorsem*nt Rider
BEST FOR TERM LIFE RATES
Symetra
5.0
Our ratings take into account the historical performance of a company's cash value life insurance policies. All ratings are determined solely by our editorial team.
Plan name
SwiftTerm
Minimum face amount
$100,000
Level term lengths available
10, 15, 20 or 30 years
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SwiftTerm
$100,000
10, 15, 20 or 30 years
Why We Picked It
Symetra had the lowest average term life insurance rates in our analysis, making it a top option for term life shoppers.
More: Symetra Life Insurance Review
Pros & Cons
- Lowest term life rates in our analysis
- Symetra SwiftTerm can be purchased online and with instant approval if you’re young and healthy.
- The policy can be renewed until age 95 (at a higher cost each year after the level term period).
- Maximum issue age of 60 for 10-year term life is lower than many competitors.
- Maximum face amount of $3 million is also lower than many competitors.
- As a relatively young company (founded in 1957), Symetra lacks a long track record of demonstrating its ability to pay claims.
- The accelerated death benefit money available if you’re terminally ill is only up to $500,000 (or 75% of your death benefit, whichever is lower).
Life Insurance Riders Available
- Accelerated Death Benefit Rider
- Accidental Death Benefit Rider
- Children’s Term Life Insurance Rider
- Waiver of Premium Rider
BEST FOR HIGHEST COVERAGE AMOUNT
Banner Life/Legal & General America
4.5
Our ratings take into account the historical performance of a company's cash value life insurance policies. All ratings are determined solely by our editorial team.
Policy name
OPTerm
Minimum face amount
$100,000
Level term lengths available
10, 15, 20, 25, 30, 35 or 40 years
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OPTerm
$100,000
10, 15, 20, 25, 30, 35 or 40 years
Why We Picked It
Banner Life is one of only a couple of life insurers that offer long level term lengths of 35 or 40 years. (Protective is the other.) It also offers coverage amounts up to $65 million, which is more than most others in our analysis.
Pros & Cons
- Maximum coverage amount of $65 million.
- Very competitive term life rates.
- Superior choice of level term lengths.
- You can convert the policy to permanent life until age 70.
- This policy is not renewable after the level term period ends.
- The maximum accelerated death benefit available is only $500,000 or 75% of your death benefits, whichever is less.
Life Insurance Riders Available
- Accelerated Death Benefit Rider
- Additional Term Insurance Rider
- Children’s Life Insurance Rider
- Disability Waiver of Premium Rider
GREAT FOR LIVING BENEFITS
Midland National
4.5
Our ratings take into account the historical performance of a company's cash value life insurance policies. All ratings are determined solely by our editorial team.
Plan name
Premier Term
Minimum face amount
$100,000
Level term lengths available
10, 15, 20 or 30 years
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Premier Term
$100,000
10, 15, 20 or 30 years
Why We Picked It
Midland National’s Premier Term policy deserves serious consideration because of the ample living benefits. Policyholders can get an accelerated death benefit after a diagnosis of a terminal illness, chronic illness or critical illness. And Midland National delivers these benefits at very competitive rates that are often lower than some competitors’ policies without these living benefits.
Pros & Cons
- Ability to take money from your own death benefit in cases of terminal illness, chronic illness or critical illness.
- Competitive term life rates that include these living benefits.
- 30-year term life is available for buyers up to age 55 (50 for tobacco users).
- Limited choice of additional riders, but likely offset by the living benefits included.
Life Insurance Riders Available
- Children’s Insurance
- Waiver of Premium for Disability
GREAT FOR OLDER BUYERS OF 30-YEAR TERM LIFE
Penn Mutual
4.5
Our ratings take into account the historical performance of a company's cash value life insurance policies. All ratings are determined solely by our editorial team.
Policy name
Term life
Minimum face amount
$250,000
Level term lengths available
10, 15, 20 or 30 years
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Term life
$250,000
10, 15, 20 or 30 years
Why We Picked It
Penn Mutual offers great term life insurance rates across a variety of term lengths and coverage amounts but is especially appealing for older buyers seeking a 30-year term.
More : Penn Mutual Life Insurance Review
Pros & Cons
- There are generally excellent rates for Penn Mutual’s basic term life policy, even for older buyers, but it can’t be converted to permanent life insurance in the future.
- If you have the convertible term, you can convert any time up to age 70.
- If you convert, you can choose from any Penn Mutual permanent life insurance policy available. Some other insurers limit your options or only have one choice of policy for conversion.
- Online application available.
- Some life insurance buyers may not be required to do a life insurance medical exam.
- You’ll have to pay for the convertible term policy if you want that feature. The convertible term policy is much less price competitive.
- No accelerated death benefit available.
Life Insurance Riders Available
- Accidental Death
- Children’s Term Insurance
- Disability Waiver of Premium
- Disability Waiver of Premium with Automatic Conversion Rider
GREAT FOR LOW LEVEL OF CONSUMER COMPLAINTS
SBLI
4.5
Our ratings are calculated based on fees, rates, rewards and other category-specific attributes. All ratings are determined solely by our editorial team.
Policy name
SBLI Term Life
Minimum face amount
$100,000
Level term lengths available
10, 15, 20, 25 or 30 years
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SBLI Term Life
$100,000
10, 15, 20, 25 or 30 years
Why We Picked It
SBLI has a very low level of complaints compared to competitors. It also offers a 25-year term option that is not typically offered by competitors.
Pros & Cons
- Superior AM Best financial strength rating (A+) means buyers can be confident in the company’s ability to pay claims.
- Low customer complaint ratio compared to others in our analysis.
- More term options than some competitors due to its 25-year term option.
- Term life rates are OK, but not among the best in our analysis.
Life Insurance Riders Available
- Children’s Term Life Insurance Rider
- Accidental Death Benefit Rider
- Waiver of Premium Rider
BEST FOR BUYERS IN THEIR 50s
Transamerica
4.5
Our ratings take into account the historical performance of a company's cash value life insurance policies. All ratings are determined solely by our editorial team.
Policy name
Trendsetter Super
Minimum face amount
$25,000
Level term lengths available
10, 15, 20, 25 or 30 years
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Trendsetter Super
$25,000
10, 15, 20, 25 or 30 years
Why We Picked It
Transamerica’s Trendsetter Super policy is worth consideration for its top-notch policy features that are available for older ages and excellent rates.
Life insurance buyers interested in living benefits should take a look at Transamerica’s Trendsetter LB term life policy. With this policy you’ll be able to access money from your own death benefit if you develop a chronic or critical condition that qualifies.
More: Transamerica Life Insurance Review
Pros & Cons
- Best average term life insurance rates for healthy buyers in their 50s, among the companies in our analysis.
- Term life insurance buyers who are young and healthy won’t need a medical exam for up to $2 million in coverage.
- Maximum issue age of 80 is higher than many competitors.
- You can convert the policy to permanent life insurance until age 75, which is older than many other insurers offer.
- Rates are good but not the lowest among the companies we analyzed (except for buyers in their 50s).
- Higher than average level of customer complaints for issues such as claim handling delays, lack of response, denial of claims and billing issues.
Life Insurance Riders Available
- Accelerated Death Benefit Rider
- Income Protection Option Rider
- Disability Waiver of Premium Rider
- Children’s Term Life Insurance Rider
- Accidental Death Benefit Rider
GREAT FOR UNLIMITED COVERAGE AMOUNT
Nationwide
4.0
Our ratings take into account the historical performance of a company's cash value life insurance policies. All ratings are determined solely by our editorial team.
Policy name
YourLife GLT
Minimum face amount
$100,000
Level term lengths available
10, 15, 20 or 30 years
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YourLife GLT
$100,000
10, 15, 20 or 30 years
Why We Picked It
Nationwide’s YourLife GLT has no maximum death benefit, as long as the company considers it reasonable for your age, income and life stage.
More: Nationwide Life Insurance Review
Pros & Cons
- Superior AM Best financial strength rating (A+) means buyers can be confident that approved claims will be paid.
- Low customer complaint ratio compared to others in our analysis.
- Great term rates for 50-year-olds.
- Term rates for 30-year-olds are higher than most others in our analysis.
Life Insurance Riders Available
- Children’s Term Insurance Rider
- Chronic Illness Rider
- Critical Illness Rider
- Premium Waiver Rider
- Terminal Illness Rider
Summary: Best Term Life Insurance
We analyzed cost and the ability to renew and convert the policy in order to find the best term life insurance.
| Company | Company - Logo | Forbes Advisor Rating | Forbes Advisor Rating | Policy name | Minimum face amount | Learn More CTA text | Learn more CTA below text | LEARN MORE | AM Best financial strength rating |
|---|---|---|---|---|---|---|---|---|---|
| Corebridge Financial |  | 5.0 |  | Select-a-Term | $100,000 | Compare Quotes | Compare quotes from participating carriers via Policygenius.com | A (Excellent) | |
| Pacific Life |  | 5.0 | | PL Promise Term | $50,000 | Compare Quotes | Compare quotes from participating carriers via Policygenius.com | A+ (Superior) | |
| Protective |  | 5.0 | | Classic Choice Term | $100,000 | Compare Quotes | Compare quotes from participating carriers via Policygenius.com | A+ (Superior) | |
| Symetra |  | 5.0 | | SwiftTerm | $100,000 | Compare Quotes | Compare quotes from participating carriers via Policygenius.com | A (Excellent) | |
| Banner/Legal & General |  | 4.5 |  | OPTerm | $100,000 | Compare Quotes | Compare quotes from participating carriers via Policygenius.com | A+ (Superior) | |
| Midland National |  | 4.5 | | Premier Term | $100,000 | Compare Quotes | Compare quotes from participating carriers via Policygenius.com | A+ (Superior) | |
| Penn Mutual |  | 4.5 | | Term life | $250,000 | Compare Quotes | Compare quotes from participating carriers via Policygenius.com | A+ (Superior) | |
| SBLI |  | 4.5 | | SBLI Term Life | $100,000 | Compare Quotes | Compare quotes from participating carriers via Policygenius.com | A (Excellent) | |
| Transamerica |  | 4.5 | | Trendsetter Super | $25,000 | Compare Quotes | Compare quotes from participating carriers via Policygenius.com | A (Excellent) | |
| Nationwide |  | 4.0 |  | YourLife GLT | $100,000 | Compare Quotes | Compare quotes from participating carriers via Policygenius.com | A+ (Superior) |
What Is Term Life Insurance?
Term life insurance is a policy where you choose the time period for locking in your rates. Common choices for term length are 5, 10, 15, 25 and 30 years.
When the level term period ends, you can generally renew the policy every year (up to a certain age), although you’ll usually pay much higher life insurance rates at each renewal. That’s why it’s good to properly estimate the best term length when you buy a policy. If you do not renew, the policy will end.
Choosing the right term life insurance policy will help ensure your insurance is aligned with your needs. For example, if you want renewal and conversion options, it’s important to ask for that when shopping.
Benefits and Drawbacks of Term Life Insurance
| Pros of term life insurance | Cons of term life insurance |
|---|---|
Less expensive compared to other types of insurance, such as whole life insurance. | There is no cash value in term life insurance so you can’t take money out of the policy through a loan or withdrawal like you can with cash value life insurance. |
You can choose a level term period that best matches the amount of time for which you need life insurance. | If renewal is an option with your policy, the high cost of renewing term life insurance after the level term period ends will come with a serious price tag. |
Your premiums will stay the same for the duration of the level term, so there are no surprises to your budget. Your rates can’t change even if your health changes. | If you decide to buy a new life insurance policy when your level term period ends, you’ll also pay more. This is because you will be older and may have new health conditions. |
What Is Covered by Term Life Insurance?
Term life insurance covers deaths of all causes, except for suicide within the first two years of the policy and misrepresentation on the life insurance application. Deaths caused by illness, disease, accidents and simply old age are all covered by life insurance.
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How Much Does a Term Life Insurance Policy Cost?
The average yearly cost for a $500,000 term life insurance policy for a woman age 40 is $264 for a 10-year term, $336 for a 20-year term and $528 for a 30-year term. A man the same age would pay $276 annually for a 10-year term, $408 for a 20-year term and $684 for a 30-year term.
You’ll see in the tables below how rates compare for a $500,000 term life policy and a $1 million term life policy when age and term lengths vary.
March 2024 Average Monthly Term Life Insurance Cost for Women: $500,000 in Coverage
| Age 30 | Age 40 | Age 50 | Age 60 | |
|---|---|---|---|---|
10-year term life | $11 | $15 | $33 | $71 |
20-year term life | $16 | $24 | $55 | $141 |
30-year term life | $25 | $39 | $94 | N/A |
March 2024 Average Monthly Term Life Insurance Cost for Men: $500,000 in Coverage
| Age 30 | Age 40 | Age 50 | Age 60 | |
|---|---|---|---|---|
10-year term life | $13 | $17 | $40 | $106 |
20-year term life | $19 | $28 | $70 | $202 |
30-year term life | $29 | $49 | $125 | N/A |
March 2024 Average Monthly Term Life Insurance Cost for Women: $1 Million in Coverage
| Age 30 | Age 40 | Age 50 | Age 60 | |
|---|---|---|---|---|
10-year term life | $15 | $24 | $57 | $135 |
20-year term life | $24 | $41 | $96 | $265 |
30-year term life | $40 | $72 | $179 | N/A |
March 2024 Average Monthly Term Life Insurance Cost for Men: $1 Million in Coverage
| Age 30 | Age 40 | Age 50 | Age 60 | |
|---|---|---|---|---|
10-year term life | $18 | $26 | $69 | $204 |
20-year term life | $30 | $49 | $129 | $381 |
30-year term life | $53 | $91 | $189 | N/A |
Cost Comparison: Best Term Life Insurance Companies
Here’s a look at rates from the best term life insurance companies in our analysis.
| Company | Policy name | Cost per year: Female buyer age 30, $250,000 for 10 years | Cost per year: Male buyer age 30, $250,000 for 10 years |
|---|---|---|---|
Banner/Legal & General | OPTerm | $101.11 | $140 |
Symetra | SwiftTerm | $101.13 | $115 |
Pacific Life | PL Promise Term | $101.80 | $115 |
Corebridge Financial | Select-a-Term | $101.90 | $116 |
Penn Mutual | Non-Convertible Term | $101.90 | $116 |
Transamerica | Trendsetter Super | $102.50 | $118 |
Protective | Classic Choice | $104.15 | $116 |
Midland National | Premier Term | $112.50 | $125 |
SBLI | Term Life | $112.81 | $131.38 |
Nationwide | YourLife GLT | $132.50 | $155.00 |
Source: Forbes Advisor research. Rates are based on buyers who are healthy and qualify for the best rates.
Factors Affecting Term Life Insurance Rates
The coverage amount and length of term you choose will affect how much you pay for term life insurance. Life insurance companies also typically look at factors that contribute to how long you’re expected to live. This evaluation of “mortality” is the basis for a buyer’s life insurance quote.
Factors that impact cost include:
- Age and gender
- Credit and past bankruptcies
- Criminal record
- Driving record (such as DUIs and reckless driving convictions)
- Health
- Health history of your parents and siblings
- Height and weight
- Nicotine or marijuana use
- Past and present prescriptions
- Plans for foreign travel to certain countries
- Results of medical exam (if required)
- Risky hobbies such as scuba diving or skydiving
- Risky occupation
- Substance or alcohol abuse history or treatment
When To Choose Term Life Insurance
Term life insurance is suited for people who need life insurance to cover a specific large debt or a finite period of time. Term life can be especially appealing to parents with young families who need financial protection while raising children.
People often buy term life instead of other types of life insurance for these reasons:
- Replace lost income.
- Pay off a mortgage.
- Pay for college.
- Cover final expenses.
How to Determine How Much Life Insurance You Need
According to the American Council of Life Insurers, there are about 60 million uninsured and underinsured American households, with an average coverage gap of $200,000. To make sure you buy life insurance with enough coverage, use an online life insurance calculator.
Our life insurance calculator asks:
- How much annual income would your dependents need if you were to pass away?
- How long would your dependents need financial support?
- How much debt do you need to pay off?
- How much tuition would you like to cover?
- How much would you like to provide for burial expenses?
- How much savings do you have?
- How much life insurance coverage do you already have?
With these dollar amounts, the calculator instantly computes how much life insurance you need to adequately cover your household debts and future expenses.
How to Choose the Ideal Term Length for Term Life Insurance
The main factor in choosing a term length is that it should be long enough to cover your financial obligations. If you need coverage to pay off your mortgage and you’ve got 20 years left, you’ll want no less than a 20-year term policy. If you’ve got 25 years left on your mortgage, but also want to make sure your new baby is covered through college, you may want to consider a longer term of 30 years.
Perhaps you want coverage until you retire, so a payout could be used by your family as income replacement. Then the first step is to estimate when you plan to retire, and use that to determine your term length.
Choosing the right term length for your needs is important for multiple reasons. Rates for a longer term are more expensive than for a shorter term, but locking in your rates now for a longer term may end up saving you big in the long run.
How We Recommend Finding the Best Term Life Insurance
When you’re shopping for term life insurance, it may be tempting to look only at the prices offered. While price is an important factor, it is not the only one.
Here are some tips we recommend for finding the best term life insurance coverage.
Compare Quotes From Multiple Life Insurance Companies
Your age and health play a substantial role in your term life insurance quotes and the coverage available to you. We suggest comparing life insurance quotes from multiple companies so you’ll be able to identify the true best value.
Consider Coverage Features in Addition to Cost
Yes, cost is very important when selecting a life insurance policy. But don’t focus solely on price or you may sell yourself short on finding the best term life insurance policy and insurer for your needs. Here are some term life coverage features we recommend considering when shopping.
- A term life conversion feature allowing you to convert the term policy into a permanent policy in the future. You’ll be glad you have this feature in the future if you develop health problems and decide you want to extend your life insurance coverage.
- Living benefits that offer the option of accessing your death benefit for various reasons while you’re still living. For example, an accelerated death benefit will let you take money from your own death benefit if you develop a terminal illness in the future.
- Life insurance riders that give you the flexibility of customizing a term life policy. For example, a waiver of premium rider will waive your life insurance payments if you become disabled in the future.
Ask About the Policy’s Accelerated Death Benefit
We find that the best term life insurance companies offer an accelerated death benefit, which is a type of living benefit. If you become terminally ill, an accelerated death benefit allows you to access your death benefit while you’re still living. Some insurers offer this same feature if you become chronically or critically ill.
Ask About Term Life Conversion
Converting a term life insurance policy into a permanent life insurance policy is a feature offered by most of the best term life insurance companies. This feature allows you to trade your term life policy for a permanent policy, such as whole life insurance or universal life insurance.
Check the rules for conversion with any insurer you consider. You usually must make a conversion during your level term period or before, and most companies also have an age cap—whichever comes first is your deadline for converting.
Related:Term Vs. Permanent Life Insurance
Find Out the Rules for Renewing the Policy
Term policies provide set rates for the level term period, such as 10, 20 or 30 years. During that time, you pay a fixed premium. Many insurers allow you to renew the policy after the initial level term period ends, up to a certain age. However, the cost of renewing term life insurance can be exorbitant, so be sure to consider that when weighing your options and shopping for term life insurance. It’s better to buy a long policy from the start, rather than count on the option of renewal in the future.
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Compare Policies With 8 Leading Insurers
Methodology
To find the best term life insurance, we used our own research and data provided by AccuQuote, a national online life insurance agency. AccuQuote has been in business for over 30 years and works only with insurance companies that have top financial strength ratings. We evaluated 20 companies on these measurements:
- Cost (80% of score): Because price is the primary concern of many term life insurance shoppers, we gave weight to this category. We scored costs based on each company’s rates for 30- and 40-year-old men and women for 10, 20 and 30 terms and for coverage amounts of $250,000, $500,000, $1 million and $2 million.
- Guaranteed renewability (10% of score): Companies earned points if their term life policies can be renewed at the end of the level term period.
- Term life conversion (10% of score): Companies earned points if their term life policies can be converted to permanent life insurance.
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Best Term Life Insurance Frequently Asked Questions
Is it worth having term life insurance?
Term life insurance is often the least expensive option for life insurance coverage. If you are looking for affordable coverage for a specific period, like 10, 20 or 30 years, it can be a great choice.
Term life insurance can be ideal if you want to cover the time period when you have a large current or future debt, like a mortgage or a child’s college expenses. It is also worth having a term life insurance policy if you want to replace lost income for your family if you pass away.
Is term life insurance right if I only want to cover a funeral?
The funds provided by term life can be used by the beneficiary to pay for a funeral and other final expenses. But if you’re looking specifically for burial insurance that will pay out no matter when you pass away, term life insurance isn’t right because it’s meant to cover only a specific time period, such as 10 or 20 years.
Instead, look for a small, permanent life insurance policy, such as universal life or whole life insurance. An independent life insurance agent can help you sort through your options.
Will taking a medical exam get me better term life insurance rates?
Taking a medical exam can potentially lead to better term life insurance quotes. Traditional life insurance policies with medical exams are considered lower risk for the insurer, and may result in better rates if you are in good health, especially when compared to more expensive options like guaranteed issue life insurance.
But there are an increasing number of options for no-exam life insurance that sometimes have pricing that’s competitive to policies that require a medical exam.
How long can term life insurance policies be?
When you buy term life insurance you’ll choose the length of the level term period, such as 5, 10, 15, 20, 25 or 30 years. A small number of companies also offer terms of 35 and 40 years.
During this time your rates won’t change, so you will know how much to budget for payments. At the end of the level term period you may have the option to renew, but it will be at a much higher rate.
What is one-year term life insurance?
One-year life insurance is a type of term life insurance that lasts for one year and is non-renewable. This type of short term coverage may make sense for times when a small amount of temporary coverage is needed, but is not a replacement for long-term life insurance with higher coverage amounts.
What types of term life insurance can I buy?
Level-term life insurance is what most people think of when talking about term life, but you can also buy annual renewable term life, decreasing term life, and return of premium term life insurance policies. Here’s how they differ:
- Level-term life insurance. Your rate is “level” for the length of the policy, such as 30 years. If you’re shopping for term life to cover income replacement or kids’ college costs, this is the type of term life to look at.
- Annual renewable term life insurance. You renew this policy every year with the expectation that the rate will go up annually because you are a year older. This type of policy might be attractive to a young life insurance buyer who wants short-term coverage while they look for a longer life insurance policy.
- Decreasing term life insurance. Your life insurance bill stays the same every month but the death benefit is constantly decreasing. This form of term life might be attractive to someone who only wants to cover a debt that’s decreasing, like a mortgage balance. It’s not good for covering long-range expenses for a growing family.
- Return of premium term life insurance. You will be refunded the premiums you’ve paid if you outlive the policy. This type of term life policy is more expensive because of the refund feature.
Related: What is term life insurance?
Can I convert a term life insurance policy to permanent life insurance?
A “term life conversion” feature allows you to convert part or all of your term policy into a permanent policy, such as universal life.
You’ll be glad to have this feature if, for example, you develop a serious health condition down the road that would prevent you from buying a new, affordable policy that would last longer than your term life coverage.
Can you get life insurance if you have cancer?
Life insurance for cancer patients means limited and often expensive options. You can qualify for guaranteed issue, group life and final expense life coverage but will probably not qualify for term life insurance or other policies. Once you’ve been in remission for at least five years, you may qualify for a new life insurance policy.
Does life insurance cover drug overdose?
Life insurance covers drug overdose deaths, with one potential exception. Policies generally have a life insurance suicide clause that states if death by suicide occurs within in the first two years of the policy, the death benefit will not be paid. If the cause of death is determined to be a suicide by overdose, the life insurance company may deny the death benefit payout.
Or, if the insurer determines you lied about drug use on your life insurance application, and then died of an overdose, it could refuse to pay the claim.
What is the maximum age for term life insurance?
The maximum issue age for term life insurance averages age 74, for a 10-year term life policy, according to a Forbes Advisor analysis of term life insurance companies. We found maximum issue ages ranging from 60 to 80.
Do you lose money with term life insurance?
If you outlive a term life insurance policy, you will “lose” all premiums paid during the term of the policy unless you purchased return of premium term life insurance.
If you outlive a term policy, there is no death benefit payout. However, your money did pay for coverage during the policy term.
What is no-medical exam life insurance?
No-exam life insurance is a type of life insurance that does not require a medical exam, like traditional life insurance often does. No-exam life insurance is worth considering for younger buyers who are in excellent health.
What happens if you live beyond your life insurance term period?
If you outlive your life insurance term period, you can often renew the policy at a much higher premium (if that option is available). Or you can shop for a new life insurance policy.
If you don’t renew a term life insurance policy, your beneficiaries will not receive a death benefit payout if you die after the term expires.
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