Term life insurance

Term life is the right fit for most families. You choose a length (10, 20, or 30 years) and a face amount, and the premium stays level for the entire term. Simple, cheap for what it does, and matched to a specific window of financial responsibility.

Quote term life →

Coverage guide

What this page is about

Term life insurance provides a death benefit for a set period, usually 10, 15, 20, or 30 years. This page is only about term life — how much to buy, how long to keep it, conversion options, underwriting, and when permanent coverage may be better.

Term life vs. whole life

Term is designed for temporary income replacement at the lowest cost per dollar of death benefit. Whole life is permanent coverage with cash value and higher premiums. Most families start with term because the biggest need is income protection while children, mortgages, or debts are still active.

Term: high death benefit, low premium, fixed period, no cash value.
Whole life: lifelong coverage, cash value, higher premium, different planning purpose.
Convertible term can preserve the option to move some coverage permanent later.

What it usually covers

Tax-free death benefit to beneficiaries in most situations
Income replacement, mortgage payoff, childcare, education funding, and debt protection
Fixed premiums during the selected term period
Optional riders such as waiver of premium or accelerated death benefit depending on carrier

What it usually does not cover

Cash value accumulation
Coverage after the term ends unless renewed or converted
Guaranteed approval for all health histories
Business or estate needs that require permanent coverage unless structured differently

Best fit

Young families needing high protection at an affordable premium
Homeowners covering a mortgage period
Business owners covering loans or key-person needs for a set timeframe
Anyone needing income replacement until retirement savings are sufficient

Usually not the right fit

Someone needing guaranteed lifetime coverage
Clients using life insurance primarily for cash value accumulation
People who will still need coverage after the selected term but cannot convert
Applicants waiting until health changes make underwriting harder

I usually start with the amount your family would actually need, then match the term length to the years the financial risk exists.

Quote term life →

How it works

1Pick the term length. 10, 20, or 30 years. The term should outlast the debt or income need you're protecting.
2Pick the face amount. Rule of thumb: 10× income + mortgage + future college costs. We'll do the actual math.
3Apply and underwrite. Many carriers now approve fully-underwritten policies with no exam using electronic health records.
4Level premium for the term. Monthly premium is locked for the entire term. After it ends, coverage stops (or converts if you elected).

How term life works

Term insurance is pure death benefit — no cash value, no investment component. You pay a level premium for the chosen term length. If you die during the term, the policy pays out. If you outlive the term, coverage ends (though most policies allow conversion or renewal).

Level premium for the full term (10, 15, 20, 25, or 30 years)
Death benefit paid income-tax-free to your beneficiaries
No cash value — 100% of premium goes to insurance cost
Convertible to permanent coverage without new medical underwriting on most policies
Renewable after the term (at much higher rates)

How much coverage do you need

The most common rule of thumb: 10–12× annual income for the primary earner, plus enough to pay off the mortgage and fund kids' education. Then match the term length to the window you need protection for.

10–12× annual income baseline
Add outstanding mortgage balance
Add expected college costs per child
Add funeral and settlement costs (~$15K–$25K)
Subtract existing savings and other coverage

How to pick the term length

Match the term to the years your family is financially dependent on your income.

20 years — most common; covers mortgage payoff and kids through college
30 years — young family, long mortgage, or plan to have kids later
10–15 years — near retirement, mortgage paying down, kids nearly grown
Layering (stacking policies) — cover a large amount short-term plus a smaller amount long-term for less total premium

Who term life fits best

Term is the right answer for the vast majority of families.

Anyone with dependents who rely on their income
Homeowners with a mortgage
Parents of minor children
Business owners with buy-sell agreements or key-person needs
Anyone who wants the maximum coverage per premium dollar

What we do for you

We shop every major carrier, factor in underwriting quirks (some are friendlier to cyclists, pilots, well-controlled blood pressure, or former smokers), and walk you through the medical exam if one is required. No pressure, no upsell to whole life unless it actually fits your situation.

10-year vs. 20-year vs. 30-year term

Sample premiums for a $500,000 policy on a healthy 40-year-old non-smoker.

Feature	10-year term	20-year term	30-year term
Monthly premium (male 40, $500k)	~$18–$25	~$28–$40	~$50–$70
Monthly premium (female 40, $500k)	~$15–$22	~$23–$34	~$40–$58
Total premium paid	Lowest	Middle	Highest
Coverage duration	Age 50	Age 60	Age 70
Conversion to permanent	Usually available	Usually available	Usually available (limited window)
Best for	Short-term debts, business buy-sell	Mortgage + kids at home	Younger buyer, income-replacement to retirement

Example costs

Preferred-plus underwriting; actual quotes vary by carrier and health class.

35 y/o female, $500k, 20-year term

$19–$26/mo

≈$228–$312/yr

45 y/o male, $1M, 20-year term

$75–$110/mo

≈$900–$1,320/yr

30 y/o couple, $500k each, 30-year term

$65–$95/mo total

Locked to age 60

Ranges are typical 2025 examples for illustration only — request a personalized quote for exact pricing.

Common questions

Do I need a medical exam?

Often no — many carriers now offer no-exam 'accelerated underwriting' up to $1M–$3M for healthy applicants under age 60. Full underwriting still typically gets you the best rate class.

What happens at the end of the term?

Coverage ends unless you convert or renew. Most policies allow renewal at a much higher (annually increasing) rate, or conversion to permanent coverage without new medical underwriting. Ideally the need is gone by then.

Can I have more than one term policy?

Yes — 'laddering' or 'layering' policies lets you cover a large amount for a shorter term and a smaller amount for a longer term, often at lower total premium than one big long-term policy.

Is my payout taxed?

Death benefits from a life insurance policy are generally income-tax-free to the beneficiary. Estate tax may apply if the policy is owned by the insured and total estate exceeds federal exemption limits.

Does term life ever pay you back if you outlive it?

Standard term does not. 'Return of Premium' term riders exist but cost significantly more — often not worth the tradeoff.

Ready for a real answer?

A licensed independent broker — no cost, no pressure.

Quote term life →Contact Logan →

You might also need

All Life & Supplemental →

Life & Supplemental

Final Expense Insurance

Small whole-life policies ($10K–$25K) designed to cover funeral, burial, and end-of-life bills. Simplified underwriting, no medical exam.

Life & Supplemental

Short-Term Care Insurance

Short-term care (recovery care) insurance pays for home care, assisted living, and nursing home stays up to 12 months — with easier underwriting than traditional LTC.

Life & Supplemental

Hospital Insurance

Hospital indemnity pays cash directly to you for hospital admissions, ICU stays, and observation. Pairs perfectly with high-deductible health plans.

Life & Supplemental

Cancer Insurance

Cancer insurance pays a tax-free lump sum on diagnosis of covered cancers. Cover treatment costs, travel, or lost income while you focus on getting better.