Figure out how many years of coverage you need.
Your term length should align with your biggest financial obligations — specifically, when you expect to be financially independent or when your dependents will be. The most common term lengths are 10, 15, 20, 25, and 30 years. Here's how to choose.
A good rule of thumb: your term should last until your youngest child finishes college, your mortgage is paid off, or you reach retirement age — whichever comes last. It's better to overestimate than underestimate. A 30-year term for a healthy 35-year-old costs only modestly more than a 20-year term, but provides an extra decade of protection.
Best for: Parents with elementary-age children, couples with 15–20 years remaining on their mortgage, or professionals in their 30s and 40s wanting coverage through their peak earning years. A 20-year term bought at age 40 covers you until age 60 — often past when children are independent.
Best for: New parents with infants, young homeowners with a 30-year mortgage, or anyone in their 20s and early 30s who wants maximum protection at a low locked-in rate. A 30-year term bought at age 30 covers you until age 60 — through children leaving home, mortgage payoff, and into early retirement.
Best for: People near retirement with a short remaining mortgage, business owners covering a specific loan, or anyone who only needs coverage for a narrow window. These are the cheapest options but also the shortest — make sure your obligations truly end within the term.
The cost difference between a 20-year and 30-year term is often smaller than people expect — sometimes just $10–$15 per month. Given that life rarely goes exactly according to plan, the extra decade of protection is usually worth the small premium increase.
If your term expires and you still need coverage, you typically have three options: renew the policy (usually at a much higher rate), convert to a permanent policy (if your contract allows), or buy a new policy (which requires new underwriting at your current age).
You can't extend the term of an existing policy, but you can buy a new one. If you think you might need longer coverage, buy the longer term from the start — you can always cancel early if you no longer need it.