What is term life insurance?

Term life insurance policies provide affordable financial protection and peace of mind to anyone with people that depend on them.
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Term life insurance basics.
How it works:

Term life insurance can provide simple, affordable financial security. A life insurance policy ensures that if you unexpectedly pass away, your dependents will receive a tax-free, single payment of money (the payout or death benefit).

With term life insurance you choose how many years your policy will last (the term length) and the coverage amount that will be paid out if you die. You pay a monthly or annual price for your policy (the premium).

What payouts can be used for:

A life insurance payout can be used for pretty much anything, but people often use them to pay off:

  • A home mortgage
  • Living expenses
  • Child’s college tuition
  • Burial expenses
Get started with term life insurance.
Try our coverage calculator to get a sense of what size policy you'd need to cover your assets.
How much does life insurance cost?
Not everyone will get the same price for life insurance. The biggest factors that affect your premium are:
  • The coverage amount and term length you choose (less coverage and shorter term lengths have lower rates).
  • Your age (younger people typically have lower rates).
  • Your gender (women have longer life expectancies so they generally have lower rates).
  • Your health status (healthier people typically have lower rates).
  • If you smoke (non-smokers typically have lower rates.

Did you know:

Over half of Americans overestimate the cost of term life insurance by 3x or more? (LIMRA 2019). So, if you’re reading this and thinking I probably can’t afford a policy, think again!

Understanding term life insurance rates–how much should it cost?

At Ethos, we recommend that you spend no more than 1% of your salary on a term life insurance policy. So if you make $50K/year, your policy should cost no more than $52/month or $500/year.

Here are some example prices for healthy, nonsmoking men and women in their 30s for $500K 20 year term policy.
Here are some example prices for healthy, nonsmoking men and women in their 30s for $500K 20 year term policy.
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See price estimates for different coverage amounts and term lengths.
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