Frequently asked questions

Term life insurance covers you for a set number of years, called the term. Common terms are 10, 15, 20 and 30 years.

If you pass away during the term, the policy pays a lump sum, called the death benefit, to the people you choose (your beneficiaries). That money is generally income tax-free.

Most term policies are level term, meaning your premium stays the same for the whole term. When the term ends, that level pricing ends. Many policies can then be renewed year to year, but the premium goes up each year based on your age.

Because it's built to protect a specific window of time, like the years your kids are at home or your mortgage is being paid, term life usually has the lowest premium for a large amount of coverage.

Term life is pure insurance. It's designed to protect a specific need, like income for your family or a mortgage, for a set number of years.

Permanent life insurance, such as whole life or universal life, is designed to provide coverage for your whole life, through and beyond life expectancy. Many permanent policies also build cash value. Both of those are why its premiums are higher than term for the same amount of coverage. That doesn't necessarily make it more expensive; it's built to do a different job.

A common starting point is a multiple of your income, often 10 times or more, plus debts like a mortgage and future costs like college. Younger people usually need a higher multiple because there are more working years to replace.

Our coverage calculator walks you through it in a few minutes.

Match the term to the years someone depends on your income. For many people that's until the youngest child is through school, the mortgage is paid off or retirement.

If a longer term is a stretch, a shorter term with the right amount of coverage is often better than a longer term with too little.

The main factors are:

• Age
• Health history and current medications
• Height and weight (build)
• Tobacco and nicotine use
• Family health history
• Driving record
• Coverage amount and term length

With level term, your premium stays the same for the whole term, so the age and health you apply at matter.

A convertible term policy lets you switch some or all of your coverage to a permanent policy later without answering new health questions, as long as you do it within the conversion window.

It's a safety net if your health changes. Convertible policies can cost a little more, and conversion rules vary by insurance company.

When you apply, the insurance company places you in a rating class based on your health, build, tobacco use and other factors. The best class gets the lowest rate.

Class names and requirements vary by insurance company. Our estimator uses four: Elite, Preferred, Select and Standard.

Not always. Many insurance companies can approve qualified applicants using health questions and records instead of an exam. Larger coverage amounts and older ages are more likely to need one.

When an exam is required, it's usually free and can often be done at your home or office.

Without an exam, approval can take days to a couple of weeks. With an exam and medical records, it's more often four to eight weeks. Timing varies by insurance company and your health history.

Your level premium period ends. Many term policies include a guaranteed renewal feature, so coverage can continue year to year without new health questions, up to an age set in the policy. The premium increases each year based on your age, and it's usually much higher than what you were paying.

From there, the usual options are:

• Let the policy end, if no one depends on your income anymore
• Renew year to year, if you need coverage for a short time
• Convert to permanent coverage, if your policy allows it and you're within the conversion window
• Apply for a new policy, priced on your age and health at that time

Renewal and conversion rules vary by insurance company.

Yes. Some people combine policies with different terms, for example a 30-year and a 20-year, so their coverage steps down as their needs get smaller.

When you apply, insurance companies look at your total coverage compared to your income.

The estimator uses a simplified health and build assessment. Your final price is set by the insurance company after underwriting, which looks at your full medical history, prescriptions, records and more. Prices also differ between insurance companies.

Not to use our tools. The coverage calculator and the estimator work without any contact information.

We only ask for your email if you choose to reach out, like when you send a question or want help getting started. We think you should be able to see the numbers first and decide for yourself.