Term Life Insurance
Life insurance that lasts for a fixed number of years (10, 20, 30) with no cash value — typically the most affordable option.
Term life insurance provides a death benefit for a specific period — usually 10, 15, 20, 25, or 30 years. If you die during the term, your beneficiary gets the death benefit. If you outlive the term, the policy ends and pays nothing.
Term is typically 5-15x cheaper than whole life for the same death benefit because there's no investment component, no cash value, and the carrier statistically expects most policies to expire without a claim. A healthy 35-year-old non-smoker can typically get $500,000 of 20-year term life for $25-$45/month.
The most common use case: replacing your income while your kids are young or your mortgage isn't paid off. A 30-year-old parent with a 30-year mortgage and two young kids might buy a 25-year term policy. By the time the term ends, the kids are grown and the mortgage is paid off — the original need has gone away.
Term policies are usually "level term," meaning the premium stays flat for the entire term (instead of rising as you age). Some include a "convertible" option allowing you to convert to permanent insurance later without a new medical exam — useful if you develop a health condition mid-term.
Related terms:Whole Life Insurance·Beneficiary
Related Geneva services:Life Insurance