Term Life Insurance

Term Life Insurance

What is term life insurance?

Term life insurance provides coverage for a set time period: typically 10, 15, 20, or 30 years. It's affordable and simple — it may make sense if you only want protection for the years you plan to support loved ones financially. If you pass away during the term, the death benefit of a term policy can be used however your beneficiaries choose.

Benefits of term life insurance

Term life insurance only lasts as long as you need it to, making it an affordable option for those who want to give their loved ones financial security if they were to pass away unexpectedly. Additional benefits of term life insurance include:

  • Lower costs: Term life insurance only covers you for a set time, resulting in a lower rate than whole life insurance policies. In fact, $250,000 of term life insurance coverage starts at $16 per month through eFinancial.*
  • More coverage: Because of the low cost of buying term life insurance, you can afford a larger death benefit and greater security for your loved ones. This makes it ideal for young families.
  • Tax-free payout: The payout your beneficiaries claim from a life insurance policy typically won't count as taxable income.
  • Guaranteed protection and premium: With a term policy, your death benefit and premium are fixed and guaranteed.

Types of term life insurance

Fixed term life insurance

Decreasing term life insurance

One-year, short-term life insurance

Simplified issue term life insurance

Comparing term and whole life insurance

Term and whole life insurance are both common life insurance options, but which is right for you? Here's a quick comparison showing how term life differs from whole life insurance:

Term life insurance

  • Coverage lasts for the length you want
  • Lower, fixed premiums
  • No cash value component
  • No death benefit if you outlive your term

Whole life insurance

  • Coverage lasts your entire life
  • Higher premiums
  • Cash value component
  • Guaranteed death benefit

If you're looking for affordable coverage that you only need for a set period of time, then term life insurance may be the right fit for you. Learn more about the differences between term life and whole life insurance.

Compare term life insurance quotes

As you consider term life insurance policies, research insurers and plans to find the right rate and coverage for you. Through eFinancial, you can easily compare term life insurance rates based on the policy type, coverage amount, and insurer.

Common questions about term life insurance

Which term length is right for me?

Wondering how long you'll need term life insurance? That depends on your budget and how long you'll be providing financial support to your loved ones. For example, if you have a 30-year mortgage, then you may consider buying a 30-year term life policy. Learn more about finding the right term length for your life insurance policy.

Can you change your coverage amount during your policy’s term?

Many term life insurance policies require you to re-apply if you want to change your coverage amount during your term. Your age and health can affect your rate, so your rate will likely increase if you re-apply later in life. But in some states, Progressive Life Insurance Company offers a "flexible term" policy that lets you increase or decrease your coverage amount without reapplying.** If you qualify for flexible term life insurance, your age and health status will "freeze" at the time you purchase your policy. So if you increase your coverage amount for a covered life event in the first 10 years of your policy, your rate won't increase due to your age or any health issues that developed since you bought the policy.

When's the best time to buy term life insurance?

Generally, the younger and healthier you are, the lower your life insurance rate will be. If you're married, buying property, or starting a family, term life insurance is an affordable way to help make sure your family has financial security if you die unexpectedly.

Can you cash out term life insurance?

No, you can't "cash out" or sell back a term life policy since these types of policies don't include a cash value component. If this is an option you're looking for, then you should look into permanent life insurance options, like whole life, which may allow you to sell the policy back to your insurer for its cash surrender value. Learn more about cash value and life insurance.

What happens if I outlive my term life policy?

If your term life policy expires, your insurer will notify you and you'll no longer have to pay your premium. If you still need coverage, you may be able to renew your policy or convert it to whole life insurance. Get more tips on what to do when your term life insurance expires.

Learn more about term life insurance

Have more questions about term life insurance? Start with these popular articles, and explore our life insurance tips and resources.

Couple on boat

Get a free online quote for term life insurance in minutes

Get a quoteOr, call 1-866-912-2477