Term life insurance provides coverage for a specified period. If the insured person dies while qualifying coverage is in force during that term, the insurer pays the policy’s death benefit to the named beneficiary, subject to policy terms.

Unlike permanent life insurance, term insurance is generally designed to address financial needs that exist for a limited number of years. Most term policies do not build cash value.

Level-term policies commonly keep the death benefit and scheduled premium level for a stated period such as 10, 20, or 30 years, depending on the product.

Income replacement is one of the most common reasons to buy term life insurance. If your household depends on your paycheck, estimate how many years that dependence is likely to continue.

For example, someone who expects to retire in 12 years may have a different coverage need from a younger parent who expects to work for another 30 years.

You do not necessarily need to replace every future paycheck until retirement. Instead, estimate how long your beneficiaries would realistically require financial support and what other assets or income sources would be available.

Parents often choose a term long enough to protect the household while children are financially dependent.

If your youngest child is two years old, a 20-year policy would extend into the child’s early twenties. A 30-year policy would provide protection much longer. A parent whose youngest child is already 15 may have a shorter remaining dependency period.

There is no rule requiring coverage to end when a child turns 18. Some families expect to provide support through college or longer, while others may have dependents who require financial support indefinitely.

A mortgage is another common financial obligation considered when choosing term length. If your family would rely on your income to keep the home, having life insurance during the major mortgage years can make sense.

However, your term life policy does not have to match the mortgage year for year.

Suppose you have 27 years remaining on a mortgage but expect that your spouse could comfortably handle the payments after your children become independent and household expenses decline. Your actual income-replacement need may be shorter than the remaining mortgage term.

The reverse can also occur. Your mortgage may be paid off before your family stops depending on your income, so life insurance may still be useful after the housing debt ends.

These examples are planning illustrations, not recommendations. The appropriate term depends on your own financial timeline, and insurers may offer additional term lengths or age-based options.

Age affects both how long you may need coverage and what a new policy may cost.

A younger parent may reasonably need several decades of financial protection. Someone closer to retirement may only need enough coverage to bridge the remaining working years or another shorter financial obligation.

California Department of Insurance consumer guidance notes that the cost of term insurance generally increases as you get older. That makes choosing too short a term potentially important: if you still need coverage when it expires, buying a new policy later may cost substantially more.

Choosing a shorter policy with the intention of simply buying another policy later can create an important risk.

A new life insurance application can be subject to underwriting. Your age, health, and other underwriting factors at that future date can affect the premium and your eligibility for new coverage.

If your health changes significantly before the original term ends, replacing that coverage could become more expensive or difficult.

Your need for term life insurance may decline as your household accumulates savings and investments, pays down debts, and becomes less dependent on your future earnings.

For example, a family may need substantial life insurance while children are young and the mortgage balance is high. Twenty-five years later, the children may be independent, the mortgage may be nearly paid, retirement accounts may have grown, and the surviving spouse may no longer require decades of income replacement.

A term ending around the point when your household expects to become financially self-sufficient can therefore be a reasonable planning objective.

Instead of choosing a term based only on what an insurer offers, map out when your major financial responsibilities are expected to end.

The longest significant financial need on that list can provide a useful starting point for selecting a term.

Consider a hypothetical 35-year-old parent choosing between 10-, 20-, and 30-year level-term policies.

A 10-year policy would expire while the child is still dependent and while substantial mortgage and income-replacement needs remain. A 20-year policy would extend until the child is in the mid-twenties but would end before the current mortgage schedule and expected retirement date.

A 30-year policy would more closely span all three financial timelines, although it would generally cost more than an otherwise comparable shorter policy. The household would need to compare that additional premium with the value of keeping coverage in force for the longer period.

This example is hypothetical and does not mean every 35-year-old parent needs a 30-year policy.

If you are alive when the level term ends, the scheduled death-benefit protection for that term generally ends unless the policy provides another continuation option and you use it.

Many term policies may allow renewal after the initial term even if your health has changed. However, NAIC guidance warns that renewal premiums may be higher and that the right to renew may end at a specified age.

Some policies may also offer a conversion privilege that allows eligible term coverage to be converted to a permanent form of insurance during a specified conversion period without new medical underwriting. The exact rules, deadlines, products, and premiums depend on the contract.

Renewability can be valuable because it may allow coverage to continue without proving that your health is unchanged. But that does not mean the premium will stay at the original level-term price.

NAIC consumer guidance specifically recommends asking what premiums will be if a term policy is renewed and whether the right to renew ends at a particular age.

Some households have financial needs that decline gradually rather than ending on one date. In that situation, one possible approach is to use more than one policy with different term lengths, assuming the coverage is affordable and the applicant qualifies.

For example, a household might have its largest need while children are young, a smaller need after they become independent, and an even smaller need approaching retirement.

Using policies with different expiration dates can cause the total death benefit to decrease as major obligations end. This approach can be more complicated than purchasing one policy, so premiums, underwriting, policy administration, and future needs should all be considered.

Your term life insurance policy should generally last through the years when your family would suffer the greatest financial impact if you died.

Consider the age of your children, how long others will depend on your income, the remaining mortgage period, education goals, retirement timeline, other dependents, and when accumulated assets are expected to make your household more financially independent.

A shorter term can reduce today’s premium but creates the risk of needing new coverage later at an older age or after a health change. A longer term costs more but keeps the original protection period in place for longer. Compare both the financial timeline and the premium before deciding whether 10, 20, 30, or another available term best fits your needs.

• National Association of Insurance Commissioners, Life Insurance, updated November 14, 2025.
• National Association of Insurance Commissioners, Life Insurance Consumer Guidance, accessed August 2026.
• National Association of Insurance Commissioners, Life Insurance Buyer’s Guide, 2024.
• California Department of Insurance, Life Insurance Guide, accessed August 2026.