Term Life Insurance is a type of life insurance policy that provides coverage for a specific period of time, known as the "term." If the insured person passes away during this term, the beneficiary receives a death benefit. However, if the policyholder outlives the term, the coverage expires with no payout.
Term life insurance is often chosen because it offers affordable premiums compared to permanent life insurance policies. It's designed to provide financial protection for your loved ones during critical periods of your life, such as while raising children, paying off a mortgage, or covering other long-term financial responsibilities.
Common Term Lengths for Term Life Insurance
10-Year Term Life Insurance
Coverage lasts for 10 years. It’s ideal for those who want short-term protection or who anticipate that their financial needs will decrease in the near future.
15-Year Term Life Insurance
Provides coverage for 15 years, commonly chosen by those in their 30s or 40s who are looking for coverage during their peak earning years or while paying off a home mortgage.
20-Year Term Life Insurance
Coverage for 20 years, suitable for families seeking long-term financial protection while raising children or ensuring their dependents are covered.
25-Year Term Life Insurance
A longer-term option, offering 25 years of coverage, often selected for long-term family protection or if significant financial obligations (such as a mortgage or college savings) are planned.
30-Year Term Life Insurance
Coverage for 30 years, commonly chosen by those in their 30s or early 40s for long-term, family-focused protection, allowing for financial security over an extended period.
