Term life
Pure protection. Fixed period. Lowest cost.
A term-life policy pays a death benefit if you die during the policy's term, typically 10, 15, 20, 25, or 30 years. There's no cash value. That's the trade: you get the highest possible coverage per dollar, with no permanence.
Book a CallWhat it is
- Level-premium contract for a chosen term (most common: 10, 20, or 30 years).
- Pays a tax-free death benefit to beneficiaries under IRC §101(a) if you die during the term.
- No cash value, no investment component, the entire premium funds the insurance cost.
- Most policies are convertible to a permanent policy during a specified conversion window if your needs change.
Who it fits
- Young families covering a mortgage, working-age income, or college-funding obligation that has a defined end date.
- Anyone who needs maximum coverage at minimum cost for a specific window of life.
- Buyers who plan to self-insure (build sufficient assets) before retirement and only need protection until that happens.
- Business obligations with a finite horizon, a loan guaranty, a buy-sell over a defined succession period, key-person coverage tied to a project.
Common questions
What buyers usually want to know.
What is term life insurance?
Term life insurance pays a tax-free death benefit if you die during a specified period (the term), typically 10, 15, 20, 25, or 30 years. It has no cash value and no investment component, every premium dollar funds the cost of insurance. If you outlive the term, the coverage simply expires.
How much term life insurance do I need?
A common framework is 10–15 times your annual income, adjusted for outstanding debts (mortgage, business loans) and dependents' future needs (childcare, college). A more rigorous answer is to calculate the present value of the income stream you want to replace. We work through this on the strategy call rather than handing you a calculator.
Is term life cheaper than permanent life insurance?
Yes, by a wide margin. Term policies are pure death-benefit coverage with no cash-value accumulation, so the premium funds only the cost of insurance plus a small expense load. A 20-year level term might cost 1/10th of a comparable whole-life premium at issue. The trade-off is permanence: if you outlive the term, coverage ends.
What does convertibility mean on a term policy?
Most term policies include a conversion option: during a specified window (often the first 10–20 years), you can convert the term policy into a permanent policy from the same carrier without new medical underwriting. This matters if your health changes during the term, you preserve insurability and lock in permanent coverage at your original health rating.
What happens at the end of the term?
Three things can happen. (1) Coverage ends and you have no policy. (2) The policy enters an annual-renewable phase where premiums increase dramatically each year, usually not economical. (3) You used the conversion option earlier to roll into a permanent policy. We plan around option (3) when permanence might be needed; otherwise we plan term lengths so coverage ends when the obligation does.
Is the term-life death benefit taxable?
Under IRC §101(a), the death benefit paid to a named beneficiary is generally not subject to federal income tax. Estate-tax treatment is separate, the policy can be includable in the insured's estate if they own it at death, which is why some larger policies are owned by an Irrevocable Life Insurance Trust (ILIT).
Talk through your situation in 45 minutes.
Share what you’re trying to solve. A licensed advisor will tell you whether this product fits, or whether something else does.
Book a Call