life coverage
Term Life Insurance
Pure death-benefit protection for 10-30 years at the lowest possible cost.
Typical Low
$180/yr
Typical Mid
$420/yr
Typical High
$1200/yr
What it is
Term life provides a fixed death benefit for a chosen term (commonly 10, 15, 20, 25, or 30 years). If you die during the term, beneficiaries receive a tax-free lump sum. If you outlive the term, coverage simply ends. It is dramatically cheaper than permanent coverage and the right choice for the vast majority of households.
Who needs it
- Anyone with dependents
- Households with a mortgage
- Parents of minor children
- Working spouses providing income
Common mistakes
- Buying too little — under 10× annual income.
- Buying a term shorter than your youngest child's age to independence.
- Letting nicotine status drive your premium 2-3× higher than necessary.
Recommendations
- Target 10-12× income, or use the DIME method (Debt + Income + Mortgage + Education).
- Lock a 20- or 30-year term while young and healthy.
- Re-shop quotes every 3-5 years; rates can drop materially.
Insurance Health Score impact
Adequate term life adds 20+ points to your Health Score in households with dependents; no coverage is an automatic high-risk flag.