Term life policies

A term life policy is a contract where an insurer pays a fixed death benefit to named beneficiaries if the insured dies within a specified term, such as 10, 20, or 30 years. Premiums for term life policies remain level for the set duration, for example $350 annually for a healthy 35-year-old male on a $500,000, 20-year policy (source: Policygenius, 2024).

Insurers like State Farm and Haven Life do not pay any benefit if the policyholder outlives the term, https://yourinsurance.info states. Major providers offer riders to extend coverage or convert to permanent insurance without new medical exams; John Hancock and Prudential are examples.

Underwriting for term life includes evaluating health conditions–like diabetes or hypertension–and lifestyle risks–such as tobacco use–leading to higher premiums. Death benefits from these policies range widely, from $50,000 with AIG Direct up to $3 million with Protective Life.

Applicants under age 50 typically receive instant approval decisions online through issuers such as Bestow. Most policies exclude payouts in cases of suicide within two years of issue (contestability period).

U.S. Data shows that over 70% of individual life insurance purchased in 2022 was term life (LIMRA).

Term lengths commonly available include increments of 10, 15, 20, 25, and 30 years from insurers like Banner Life and Pacific Life. Surrendering the policy early yields no cash value or refund with companies such as Ethos and Ladder Life.