Best Term Life Insurance Companies

Term life insurance is pure life insurance coverage without any investment or cash value component. It guarantees a death benefit payout to your beneficiaries if you pass away during a specified time period—the 'term.' Common term lengths are 10, 15, 20, 25, and 30 years. Because it only provides coverage for a limited time and doesn't build cash value, it is the most affordable type of life insurance available.

Select a term length that matches your longest financial obligations. For example, if you just took out a 30-year mortgage, a 30-year term policy ensures your family could pay off the house if you die. If your youngest child is a toddler, a 20-year term would provide coverage until they are likely financially independent and finished with college.

If you outlive your term life insurance policy, your coverage simply ends, and you stop paying premiums. You do not get your premiums back unless you purchased a specific 'return of premium' policy (which costs much more). If you still need coverage after your term expires, you can typically renew the policy annually (at a much higher rate), convert it to a permanent policy, or apply for a new term policy based on your current age and health.