Life insurance products generally fall into two groups, term and permanent insurance. Term insurance provides coverage at a set price for a specific number of years. For example, if you select an 20-year policy, you would be covered for a “term” of 20 years. This policy would provide a lump sum payment (“death benefit”) to your designated beneficiary (usually a spouse or child) if you were to die while the policy is active.

Generally, Term Life Insurance is best for:

• People with a mortgage, student loans, or debts
• Income replacement for a surviving spouse
• Buying more coverage on a budget
• Families with kids and education costs
• Families who want substantial coverage at a low cost
• And more!

When thinking about how long to get life insurance for, consider choosing a policy length to match your longest financial responsibility. For instance, if paying for college or paying off a mortgage are major financial concerns but you're pretty sure that you won't need life insurance coverage after the kids graduate and the mortgage is paid, then it might make sense to buy a term policy that'll get you through those years.

Term life insurance is great for people who may be on a tight budget because it allows for high levels of life coverage when they need it most. When thinking about how much coverage you need, start by asking yourself how much can you afford. To determine how much you need, think about all of your financial responsibilities and how long they'll last.

That’s why most experts recommend life insurance coverage that’s six to eight times your annual salary. Coverage amounts typically start at $100,000 and go up to $10 million.

So, if you’re making $75,000 a year and you have life insurance coverage through work with a benefit that’s 2x your salary, it makes sense to consider buying your own policy to make up the difference.

It's probably less expensive than you think! One of the biggest advantages of term insurance is its affordability. The cost for coverage is different for everyone and some may be able to get term life insurance for as little as $8.24 a month. How much your life insurance costs will depend on how much coverage you want, how long you need it for, and things like your age and health history.

According to a 2022 study conducted by LIMRA, more than half the population believes term life insurance is three times more expensive than it is. When respondents were asked to estimate the cost of a $250,000 term life policy for a healthy 30-year-old, more than half said $500 per year or more. In reality, the average cost is closer to $160, which is cheaper than the average cost for an annual gym membership. According to a report by Money Under 30, that is around the same amount you might spend on one commercially prepared meal in a restaurant.