How it works
You choose a coverage amount and a length of time, commonly 10 or 20 years. If the insured person dies during that time, the policy pays a death benefit to the people you name. Premiums are typically level for the length of the term. Term insurance does not build cash value.
Who it often fits
- New homeowners who want the mortgage covered
- Parents of young children who rely on one or two incomes
- Anyone who wants strong protection for a specific stage of life
Things to consider
- The end date. When the term ends, so does the coverage unless you convert or renew.
- Conversion options. Many policies let you convert to permanent coverage, often at a higher cost. Ask what your policy allows and until when.
- Health and age. If you need new coverage later, your price and eligibility depend on your health then.
Questions to ask
- How many years will my family depend on my income?
- How much coverage would pay off debts and replace income?
- Can I convert this policy later, and what would it cost?
For the bigger picture, read our guide to term and permanent coverage.
Talk with Alethe See all coverage
This page is general educational information. It is not tax or legal advice and it isn’t a recommendation for any specific product. Features, costs and availability vary by carrier and state.