10 Questions & Answers About Term Life Insurance 

 1. What is term life insurance?
Term life insurance provides financial protection for a specific period—usually 10, 15, 20, 25, or 30 years. If the insured passes away during that term, the policy pays a tax‑free death benefit to the beneficiaries.
2. Why is term life insurance usually the most affordable option?
Term life is cheaper because it offers coverage for a set number of years and doesn’t build cash value. You’re paying purely for protection, not investment features.
3. How do I choose the right term length?
Most people choose a term that matches major financial obligations—like the length of a mortgage, years until retirement, or years until children are financially independent.
4. How much coverage do I need?
A common guideline is 10–15 times your annual income, but the right amount depends on your debts, income replacement needs, and family goals.
5. What happens when the term ends?
When the term expires, coverage stops. You can either renew at a higher rate, convert to permanent insurance (if your policy allows), or apply for a new policy.
6. Does term life insurance require a medical exam?
Many policies do, but there are also no‑exam options depending on age, health, and coverage amount. No‑exam policies are faster but may cost more.
7. Can I convert my term policy to permanent life insurance?
Most carriers allow conversion within a specific window. This lets you switch to permanent coverage without a new medical exam, which is valuable if your health changes.
8. What affects the cost of term life insurance?
Rates are based on age, health, gender, lifestyle, tobacco use, family history, and the amount/length of coverage. Younger and healthier applicants pay the lowest premiums.
9. Can I have more than one term life policy?
Yes. Many people layer policies—for example, a 30‑year policy for income replacement and a 15‑year policy for mortgage protection.
10. Who should be my beneficiary?
Most people choose a spouse, children, or a trust. You can also name multiple beneficiaries and assign percentages. It’s important to keep this updated as life changes.