What it is
Term life insurance provides a death benefit to your beneficiaries if you pass away during a set period, called the term. Common terms are 10, 20, or 30 years.
How it works
- You choose a coverage amount and a term length.
- You pay premiums to keep the policy in force during the term.
- If you pass away during the term, your beneficiaries receive the death benefit.
- If you outlive the term, coverage ends unless you renew it or convert it, if your policy allows.
Premiums and coverage length
Premiums are typically level for the length of the term and are usually lower than permanent life insurance for the same benefit amount. Renewing after the term ends generally costs more, because pricing is based on your age at that time.
Cash value
Term life does not build cash value. It's pure protection, which is part of why it usually costs less.
Carriers you can quote online
Online term life quotes are available from UnitedHealthcare and Allstate Health Solutions. UnitedHealthcare offers 10- or 20-year terms, optional spouse and child coverage, and an optional critical illness benefit that pays part of the death benefit early after a qualifying diagnosis. Allstate Health Solutions offers adult term life with rates guaranteed for 5 years, issue ages 18 to 64, and renewal up to age 85. Hollen can also compare term life from other carriers she works with.
Quote and enroll online: compare prices from UnitedHealthcare and Allstate
Get your own quote, compare plans side by side, and enroll directly on the carrier's site when you're ready.
UnitedHealthcare
Individual plans through UnitedHealthcare's UHOne site, underwritten by Golden Rule Insurance Company.
See UnitedHealthcare prices & enroll (opens in a new tab) ↗Allstate
Allstate Health Solutions short term medical, accident, critical illness, hospital indemnity, dental, and term life plans.
See Allstate prices & enroll (opens in a new tab) ↗Each carrier's site shows its own prices and plans, and may ask for basic information again. Plans and availability vary by state. Prefer a hand? Hollen will also follow up with you personally, and you can always request a free quote or book a call.
Pros and considerations
Pros
- Usually the lowest premium for a given amount of coverage
- Simple to understand
- Coverage can be matched to a specific need, such as the years until a mortgage is paid off
Considerations
- Coverage ends when the term ends
- No cash value
- Renewing later generally costs more, and new coverage depends on your age and health at that time
Who it's often a fit for
- Young families and parents raising children
- Homeowners with a mortgage
- People who want a larger death benefit on a budget
- Anyone covering a need that has an end date
What affects the premium
Every application is priced individually. These factors usually matter most:
- Your age and health when you apply
- Tobacco use
- Coverage amount
- Term length (longer terms cost more)
- Whether the policy requires a medical exam
- Optional riders, such as conversion or waiver of premium
When to consider it
Many people look at term life when something changes: getting married, having a child, buying a home, or starting a business. Since premiums are based partly on age and health, applying sooner usually means a lower locked-in rate for the whole term.
Common mistakes to avoid
- Choosing a term that ends before your kids are grown or your mortgage is paid off
- Buying too little coverage to replace income
- Skipping the conversion option if you might want permanent coverage later
- Letting a policy lapse by missing payments
- Not naming contingent beneficiaries
How Hollen helps
Hollen helps you pick a coverage amount and term length based on your income, debts, and family goals, compares term options from multiple carriers, and explains renewal and conversion rules before you buy.
Frequently asked questions
What happens when my term ends?
Coverage stops unless you renew or convert. Some policies let you renew year to year at a higher cost, or convert to permanent coverage without a new medical exam within a set window. Check your policy's terms.
How long of a term should I choose?
Many people match the term to their biggest need, such as the years until children are grown or a mortgage is paid off. Hollen can help you think it through.
Do I get money back if I outlive the policy?
Standard term life doesn't pay anything if you outlive the term. Some policies offer a return-of-premium feature for a higher price.
Can I convert term life to whole life later?
Many term policies include a conversion option for a limited time. The details vary by policy.
How long should my term be?
Many people match the term to their longest financial obligation, such as the years until the youngest child is independent or the mortgage is paid off.
Can I cancel a term policy?
Yes. You can generally stop paying and let the policy end. There's no cash value to receive.
Compare your options with Hollen
Not sure which type fits? Hollen can walk through term, whole, and universal life with you. See also: Whole Life Insurance · Universal Life Insurance · Life insurance overview
This page is general educational information, not a guarantee of coverage, eligibility, or cost. Premiums, benefits, and features vary by policy, carrier, and state, and depend on factors like age, health, and coverage amount. Policy loans accrue interest. This is not tax, legal, or financial advice.