Imagine a world without yourself in it. Would your family need help paying the bills? Term life insurance can help you bridge that gap at a relatively low cost. If you die while the policy is in force, you’ll leave behind a lump sum of cash for whomever you choose.

Because term life insurance doesn’t last forever and has no cash value, it’s typically much cheaper than whole life insurance.

» MORE: Term life insurance definition

Key terms in this article
What is term life insurance?
Term life insurance is a contract between you and an insurance company that lasts for a specific period of time, such as 10, 20 or even 30 years. In exchange for your premium payments, the insurer pays a death benefit to your life insurance beneficiaries if you die during the term of the contract.

Unlike whole life and other types of permanent life insurance that may last your entire life, term life insurance coverage typically expires when the term ends. If you still need life insurance, you may be able to renew your policy, convert it to permanent coverage at a higher premium or buy another policy.

Term life doesn’t build cash value that you can borrow against, like permanent life insurance does. This is one reason term life is cheaper than whole life. With term life, you generally pay for just the potential death benefit; with whole life, higher premiums are needed to grow cash value and allow the insurer to continue offering coverage for a longer period of time.

Term life is a good policy to buy if you:

Want lower premiums coupled with a large payout when you die.

Want to cover expenses that eventually end, like paying off your house or sending your kids to college.

» MORE: Term vs. whole life insurance: Differences, pros and cons

Do you need term life insurance?
In general, term life insurance is sufficient for most people who are in the market for coverage. Consider term life insurance if:

Others depend on you financially.

Your death would be a financial burden to others.

You have debt that will be paid off after a number of years (like a mortgage or student loan).

You’re a stay-at-home parent and your family would have to pay someone to handle household tasks and other services if you die.

Term life insurance policies often last for 10, 20 or 30 years, but some insurers have terms available in one- and five-year increments. If you’re a breadwinner in your family, you can choose a term length that matches the years your family will rely on your income, such as the remaining years you’ll have mortgage payments.

Ideally, by the time your coverage ends, you’ll no longer need life insurance. Your children will be grown, your mortgage will be paid off, and you’ll have enough savings to be financially secure.

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Nerdy Tip
If you expect your needs will change over time, you can buy more than one life insurance policy, giving you extra coverage during the stages of life when you need it most. This strategy is known as “laddering,” and it’s useful if you have financial obligations set to end at different times. For example, you could take out a 30-year policy to match your 30-year mortgage and a 20-year policy to cover your children until early adulthood, when they’re likely to start earning their own money.

If you buy term life and then decide you need lifelong coverage after all, many policies will allow you to convert your term life policy to permanent insurance. Your premiums will go up, but you can stay insured without having to prove you’re still in good health. Some policies allow conversion at any time, while others permit it only in the first few years of coverage or before you reach a certain age, like 75.

Find out whether term life insurance is the best fit for you by using our tool below.

» MORE: Average life insurance rates

How much does term life insurance cost?
Term policies are often the most affordable life insurance. The cost of a term life insurance policy depends on several factors, including:

Age. Younger people qualify for lower premiums because they are less likely to die in the near term.

Health. Many insurers require you to take a life insurance medical exam and answer health questions. Poor health can mean higher premiums.

Gender. Men typically die at younger ages than women, so men often pay more for life insurance. Life expectancy in the U.S. is 79.9 years for women and 74.2 years for men, according to the latest data from the Centers for Disease Control and Prevention
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With most term life insurance policies, premiums and payouts stay the same throughout the term. In this way, term life is one of the more predictable types of life insurance.

Here’s a look at how much you might expect to pay for a 20- or 30-year term life policy, compared with the cost for a whole life policy with the same death benefit.