Updated: September 15, 2025
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Your coverage should last until no one depends on your income, whether that’s when your kids grow up, your debts are paid off or you reach retirement.
Longer-term policies cost more overall, but they lock in your rate for decades and reduce the risk of being denied coverage later in life.
If you outlive your term but still need coverage, policy renewal can be expensive. Buying the right length upfront helps avoid paying more later.
Your coverage should last until no one depends on your income. This means covering major responsibilities that don't last forever, like a mortgage, raising kids or paying off debt.
Term life insurance works well for this purpose. It gives you coverage for a set number of years at a fixed rate, costing much less than permanent insurance and often saving you thousands.
Term life insurance lasts 10, 20 or 30 years, with some insurers offering five-to-40-year options. Longer terms cost more upfront, but lock in your rate. Shorter terms cost less initially, but renewal rates increase with age.
Term length refers to how long your life insurance policy covers and how long you pay premiums (monthly or annual payment). If you have a 20-year term and die in year 15, your beneficiaries receive the death benefit. If you die in year 21, after the term expires, they receive nothing.
Insurers offer terms ranging from five to 40 years. The longer your term, the higher your premium. This is because you're locking in your rate for more time. As you age, health problems become more likely and your risk of dying increases.
5 | Short-term needs | Business loans, employment gaps, temporary coverage |
Pre-retirement or older children | Final decade of work, children in high school/college | |
Midterm obligations | Moderate mortgage balance, teenagers | |
Most popular choice | New parents, newlyweds, average mortgage | |
Long-term obligations | New 30-year mortgages, very young children | |
Maximum working years |
Short-term life insurance runs for a few years. It's suitable for job changes, business loans or career switches.
Five-year policies work well for business loans, job transitions, or career changes. They're harder to find than 10-year or 20-year terms, but some insurers focus on flexible options like these.
Some insurers offer term life insurance policies that last up to 40 years, the longest option. These are useful if you want coverage for most of your working life or have long-term financial obligations, like a 30-year mortgage or supporting a child through college.
Not all companies offer 40-year terms. Currently, only two providers offer this option: Protective Life and Banner Life (part of Legal & General).
Protective Life provides 40-year term policies with death benefits from $100,000 to $50 million. Nonsmokers can apply until age 45, while smokers must apply before age 40.
Banner Life (part of Legal & General) sells 40-year term coverage with the same age restrictions as Protective Life. The company serves all states except New York, where William Penn handles sales.
The cost of term life insurance varies based on the length you choose, and understanding the true financial impact requires looking beyond monthly premiums. We analyzed quotes from major insurers to reveal the complete cost picture and break-even points that determine your best value.
| 10 years | $31 | $369 |
| 15 years | $38 | $452 |
| 20 years | $46 | $551 |
| 30 years | $79 | $946 |
| 40 years | $183 | $2,199 |
*The rates above are based on average quotes for term policies with a $500,000 coverage amount. The applicant profile is that of a 40-year-old nonsmoker with average weight and health ratings. Actual rates will vary based on personal factors, and you should obtain personalized quotes from licensed insurers
Choosing the right term length might seem complicated, but focusing on your biggest financial obligations makes the decision clearer. Here's how to match your coverage to your family's actual needs:
Got 22 years left on your mortgage? Buy at least a 25-year term. You don't want your coverage to end while you still owe money. Insurers don’t offer 22-year terms, and a 25-year policy gives you a small buffer in case your repayment schedule shifts or you refinance later on.
Children need financial support beyond age 18, especially if you're paying for college. A 20-year or 30-year term covers most families until children become financially independent.
Once you stop working and live off retirement savings, you may not need life insurance. If you're 35 and plan to retire at 65, a 30-year term covers your working years and the income you would generate.
Student loans, credit card debt or business loans should factor into your term length. Your coverage should last until these debts are paid off.
Buy longer coverage while you're young and healthy. Health problems later can make coverage expensive or impossible to get.
The right term length depends on which one fits your needs. Different term lengths work for different situations. Let's break this down:
Six situations affect how long you need coverage:
Jordan, 25, is single but has $60,000 in student loans and helps support aging parents. A 15-year term covers the student loan payoff period and ensures family obligations are met if something happens during peak earning years. Jordan should choose a 30-year term if he plans to marry and buy a home.
Sarah, 28, just had her first child. A 30-year term covers her until the child reaches 28 and becomes financially independent. This also covers most of her mortgage payments.
Mike, 40, has two teenagers and 15 years left on his mortgage. A 20-year term covers him until his children finish college and his mortgage is paid off.
Lisa, 55, has young adult children and six years left on her mortgage. A 10-year term covers her remaining work years and ensures her mortgage is paid if something happens.
James, 35, owns a business with a 10-year loan. A 15-year term covers the business debt plus provides extra protection for his family during the business's growth phase.
Maria, 32, is raising two young children alone. A 30-year term ensures her children have financial support through college, even if she's not there to provide it.
Many people worry about what happens if they outlive their term policy. When your term ends, your coverage stops. You have several options:
Many policies allow you to increase coverage or extend your term length without a medical exam through riders or policy modifications. You can also convert to permanent insurance at any time during your term period.
Most policies let you renew annually, but at much higher rates that reflect your older age and any health changes. A 50-year-old might pay five times more than they did at 30.
Many policies include conversion privileges that let you switch to permanent life insurance without a medical exam. You must convert before your term expires, and the new policy will be more expensive.
If you take no action, your policy simply ends. No benefits are paid if you die after the term expires.
You can apply for a new term policy, but you'll go through underwriting again. Health issues that developed during your first term could make new coverage expensive or unavailable.
Conversion makes sense when you need lifelong coverage or want to build cash value. Most term policies include conversion privileges, but timing matters.
Annual renewable term (ART) insurance is another option beyond standard multi-year terms. It offers flexible year-to-year coverage but comes with rising costs as you age.
ART policies let you renew coverage yearly without medical requalification. Premiums start low but increase annually as you age.
You can drop your term life insurance if:
Factors | When to Stop |
|---|---|
Financial stability | Your savings cover your family's bills without your paycheck. |
Paid-off debts | No mortgage or student loans left to worry about. |
Independent children | Your kids have jobs and pay their own way. |
Approaching maximum age | Premiums skyrocket after 65. If it costs too much, cancel it. |
Marital status changes | Got divorced or your spouse died? Your coverage needs have changed, too. |
Shop around for different term lengths and compare what you'd pay. Online tools show how a 10-year versus a 30-year policy affects your monthly budget and long-term costs. You'll spot the cheapest rates and see what you give up with shorter versus longer terms.
Beyond choosing a single term length, you can use advanced strategies to align coverage with changing financial needs. These approaches can make protection more efficient and cost-effective.
Layer multiple term policies to match specific obligations. For instance, use a $300,000 20-year policy for a mortgage and add a $200,000 30-year policy for children’s college expenses. Laddering often costs less than one large long-term policy while keeping the right amount of protection in place.
Start with higher coverage on a 30-year term and reduce the amount every decade as debts shrink and savings grow. Many insurers allow coverage reductions without new underwriting, lowering premiums while keeping protection aligned with your financial situation.
Combine personal and business needs through layered coverage. Use term life for family protection, add key person insurance to safeguard operations, and fund buy-sell agreements to ensure ownership continuity. This approach protects both household and business interests.
Review these strategies with a financial advisor to keep coverage in step with evolving goals and obligations.
Pick a term length that covers your biggest expenses and family needs. Think about your mortgage, kids' ages, debts, and when you'll retire.
Starting a family or buying a house? Go longer: 20 or 30 years. Need temporary coverage or want to keep costs down? Shorter terms or renewable policies work better.
Shop around before you buy. Different insurers offer different deals.
Here are answers to frequently asked questions about life insurance term lengths to help you determine the best coverage for your needs.
Term life insurance lasts for a set period chosen when you buy the policy, commonly 10, 20 or 30 years. Five-year and 40-year terms are available for shorter or longer coverage needs.
Term length is how long your coverage stays active and how long you pay premiums. It determines your protection period under the policy.
The 20-year term is the most popular choice. It works well for new parents, covers children through college and matches average mortgage lengths.
Choose a 30-year term if you have long-term obligations like a 30-year mortgage or very young children. A 40-year term works best for people in their 20s who want coverage through most of their working years.
The longest term life insurance is a 40-year policy. It works well for younger people or those with long-term financial obligations.
Add up your major financial obligations: mortgage payoff date, years until children are independent and years until retirement. Choose a term that covers the longest obligation.
For term life insurance, you pay premiums during the entire term. Once the term expires, so does your payment obligation.
Consider stopping term life insurance when financial obligations decrease significantly, such as when children become financially independent or you pay off your mortgage.
Most insurers stop offering term life insurance between the ages of 75 and 80, depending on the policy. These policies are very expensive and only needed in unique situations.
Term life insurance is recommended for those needing financial protection for a specific period. It makes sense if you have defined financial responsibilities, such as a home loan or educational expenses for children.
Protective Life and Banner Life (Legal & General) are the only companies offering 40-year terms. Nonsmokers can apply until age 45, while smokers must apply before age 40.
Choosing the right term length for life insurance feels overwhelming when you're trying to balance affordability with long-term protection. That's why we designed our research to show you real costs across different coverage periods, so you can see exactly how your decision today affects your family's financial security tomorrow.
We gathered quotes from top-rated national insurers for 10-year, 15-year, 20-year, 30-year and 40-year policies to reveal how premium costs change with longer coverage. This approach highlights the key trade-offs between short- and long-term policies, affordability, flexibility and long-term value, that directly impact your decision.
Our Sample Profile for Rate Analysis
We used a standard industry profile to generate consistent pricing data:
We collected quotes across multiple term lengths from this baseline, then adjusted the profile where needed to show how age, health and coverage duration influence your actual costs.
What We Evaluated Beyond Just Rates
We based MoneyGeek's recommendations on licensed insurance professionals and financial planning best practices. We also reviewed insurer offerings for features like conversion options, annual renewability and medical exam requirements. All of these factors impact how long your policy may last.
Data Sources and Recency
We updated all rate data and insurer information in 2025 using publicly available online quotes, company disclosures and actual insurer term offerings. We based our recommendations on licensed insurance professionals and financial planning best practices.
Why This Matters for Your Decision
The term length you choose doesn't just affect what you pay today. It determines how well your loved ones are protected if something happens to you. Whether you're covering a 10-year mortgage or planning for 30 years of college funding, our analysis helps you match your coverage period to your actual financial responsibilities.
About Mark Fitzpatrick
Mark Fitzpatrick, a Licensed Property and Casualty Insurance Producer, is MoneyGeek's resident Personal Finance Expert. With over five years of experience analyzing the insurance market, he conducts original research and creates tailored content for all types of buyers. His insights have been featured in publications like CNBC, NBC News and Mashable.
Fitzpatrick holds a master’s degree in economics and international relations from Johns Hopkins University and a bachelor’s degree from Boston College. He's also a five-time Jeopardy champion!
Passionate about economics and insurance, he aims to promote transparency in financial topics and empower others to make confident money decisions.
