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Life Insurance 

What Is Term Life Insurance and How Does it Work?

When looking to buy life insurance, the most commonly purchased is term life insurance.  Term life insurance is a life insurance product that lasts a specific period of time (a term).  If the insured individual dies within that specific period of time, the life insurance carrier pays a death benefit to the insured’s beneficiaries.  Term life insurance is the least expensive way to purchase life insurance coverage.

Paying for Term Life Insurance

The majority of term policies sold are “level” term policies.  With level term life insurance, your policy premiums remain the same for the entire term length.  So, if you’re paying $21 per month for a 30-year term policy, that $21 will never decrease or increase for the entire life of the policy.

Term life insurance is affordable and can be customized to fit in most budgets.  You have options as to how long you want coverage for.  Not everyone needs the same amount of life insurance coverage.  The most common term lengths are 10, 15, 20, 25, and 30 years.  The longer your coverage lasts, the higher your premiums will be.

Average Monthly Premiums for a
Healthy 30-Year-Old Male
with a $500,000 Term Policy

10-Year Term

15-Year Term

20-Year Term

25-Year Term

30-Year Term

How much term coverage you own (a.k.a. the amount your beneficiaries would receive if you died) also affects your policy premiums.  The more coverage you own, the higher your premiums.

Average Monthly Premiums for a
Healthy 30-Year-Old Male
with a 20-Year Term Policy









Not everyone needs one-million dollars’ worth of life insurance coverage.  Buy what you can afford.  Here at Quotacy we always say a $100,000 policy is a million times better than nothing.

Not sure how much life insurance you need?  Try out our

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