Term life insurance
Updated for plan year 2026
In plain terms
Term life insurance provides a death benefit for a fixed period (commonly 10, 20, or 30 years) at a level premium, with no cash value. It is inexpensive precisely because most policies never pay out, and it is designed to replace your income during the years your family depends on it.
A plain example
A healthy 35-year-old might buy a $500,000, 20-year term policy for a modest monthly premium, covering the years until the mortgage is paid and the kids are independent.
Why it matters
For the overwhelming majority of people, term does the actual job of life insurance (replacing lost income) at a fraction of the cost of permanent policies, freeing cash to pay down debt and invest.
A common point of confusion
'Term is a waste because it expires with nothing.' Its low cost is the point: you insure the years of need and invest the savings, rather than overpay for lifelong coverage you likely won't need.