Term Life Insurance

What is term life insurance?

Term life insurance provides coverage for a specific amount of time: 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.

What are the benefits of term life insurance?

Unlike whole life and universal life, which last your entire lifetime, term life insurance only lasts as long as you need it to. This makes it significantly more affordable and a popular choice.

Lower costs

Term life insurance only covers you for a set time, resulting in a lower rate than other 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.

Policy length flexibility

Term life insurance policies give you the freedom to choose your length of coverage. Many people choose a term length that roughly matches the years left on their mortgage or the years their children will be dependent.

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, if you make your payments on time and there's no life insurance fraud.

Comparing term and permanent life insurance

Term life insurance differs from permanent life insurance in the following ways.

Term life insurance

Coverage lasts for the length you want (10, 15, 20, 30 years)
Less expensive
Fixed premium
Death benefit can be higher due to the lower cost

vs.

Permanent life insurance

Coverage lasts your entire life
More expensive
Cash value component
Includes whole life, universal life, and final expense policies

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.

One-year, short-term life insurance

Do you want to try out life insurance? Do you only need short-term coverage? Learn about the one-year term life insurance policy, starting at $10 per month with coverage options up to $200,000.^† You can get a policy in just minutes.

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.

One-year term

Consider a one-year term if you want instant life insurance and you're just starting out with life insurance or want to fill a temporary gap in coverage.

10-year term life insurance

Consider a 10-year term if you're looking to supplement another policy, you're close to retiring, or your finances are secure, but you want to provide your family some protection in case you pass away.

15-year term life insurance

Consider a 15-year term if you have kids that will be adults in 15 years or less, or if you have a 15-year mortgage (or another loan) that you'd want to help your partner pay off if you unexpectedly pass away.

20-year term life insurance

Consider a 20-year term if you've started a family or plan to soon, to provide a financial safeguard for your children until they're adults.

30-year term life insurance

Consider a 30-year term if you're young and want to provide your loved ones with a safety net until you retire. Another reason might be if you recently got a 30-year mortgage or another long-term loan.

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 policies to see how your rate changes based on the policy type, coverage amount, and insurer.

eFinancial offers a variety of simplified term life insurance options such as RAPIDecision® Life, making it possible to purchase affordable life insurance quickly with no medical exam.

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.

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