Term life insurance covers you for a set number of years. It is usually the most affordable way to get a large amount of protection while your family relies on your income.
How it works
You choose a term, commonly 10, 20, or 30 years. If you pass away during that time, your beneficiaries receive the death benefit. If the term ends, coverage stops, unless you renew or convert.
Choosing the length
Match the term to your longest major obligation, such as paying off your mortgage or children finishing school.
Estimating the amount
A simple starting point is to add up:
- Debts, including the mortgage.
- Several years of the income your family would need.
- Future costs like education.
- Minus savings and existing coverage.
Conversion options
Many term policies let you convert to permanent coverage later without new medical questions, within set time limits. This can be valuable if your health changes.
The bottom line
Term life gives the most protection per dollar for the years you need it most. Pick a term and amount that match your real obligations.
Learn about term lifeThis article is for educational purposes only and is not tax, legal, or investment advice. Insurance and annuity products are not deposits, not FDIC insured, and not guaranteed by any bank. Guarantees are backed solely by the financial strength and claims-paying ability of the issuing insurer. Product features vary by insurer and state.
