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Term Life Insurance, Explained
Plain-English guides to term life insurance: how it works, how long it lasts, what happens when the term ends and how it compares with whole life. Reviewed by a licensed agent.
What term life insurance is
Term life insurance covers you for a set period of time. If you die during the term, it pays the death benefit to the people you name. If the term ends while you’re still living, the coverage stops unless the policy lets you renew it or convert it to permanent coverage.
Because it covers a set period and usually doesn’t build cash value, term is designed to cost less than permanent life insurance for the same amount of coverage, especially in the early years. Many people match the term to the years their family depends on their income, or to the years left on a mortgage. Renewing later usually costs more, because the price is based on your age at renewal.
Term lengths, prices and eligibility vary by insurance company, age, health and state. RestAssured is not an insurance company or an insurance agency. RestAssured connects callers with independently licensed insurance agents.