Term Life Insurance Policies

Term life insurance offers fast, easy and affordable financial protection for your loved ones.
mother holding son
Term life insurance
What is a term life policy?

Term life insurance is a type of life insurance that provides coverage for a specific period, or term, chosen by the policyholder. It’s typically the most straightforward and affordable life insurance option by covering you for a set "term" (life insurance terms are typically 10 to 30 years). If you pass away during the term period, your beneficiaries receive a cash payment, called a death benefit.

Unlike permanent life insurance policies, such as whole life or universal life, term life insurance does not build cash value over time. 

Is a term life insurance policy good for me?

Term life insurance is a straightforward and cost-effective solution for individuals seeking affordable protection during specific periods of their lives. It's important for individuals to carefully consider their financial goals and needs when choosing the duration and amount of coverage that best suits their circumstances.

That said, there are a few reasons that many people choose to get a term life policy. First, it’s generally more affordable than permanent life insurance, especially in the early years of coverage. This makes it an attractive option for individuals who want significant coverage at a lower cost, particularly during times of higher financial responsibility.

The other key advantage is that premiums for term life insurance policies are fixed for the duration of the term. This means that the policyholder pays the same premium amount each year, providing predictability for budgeting purposes.

Term life insurance with Ethos might be right for you if:

  • Your loved ones would need to replace lost income while raising children or paying a mortgage. Whether you’re the breadwinner or a contributor to the family finances, your loss of income could mean a big lifestyle change for the people you leave behind. A term life policy can help avoid that.
  • You have short-term financial responsibilities such as loans, a new business, or credit card debt. The last thing you want to do is leave debt behind for your family to have to deal with. A term life insurance policy can make sure your obligations are taken care of.
  • You want the most affordable life insurance coverage. If you’re on a budget but still want life insurance protection, a term policy is typically the most affordable.
  • You appreciate the straightforward nature of term life insurance. Same fixed premium for a set term, and you know what the death benefit payout is – there are no surprises or complex things to manage.
What’s the difference between term and whole life insurance?

If you’re considering life insurance, term policies use premiums to cover you for the determined "term" of the policy, expiring if not claimed within that time frame. Whole life insurance can last your entire life if premiums remain current. Whole life policies also have the potential to accrue cash value, depending on the policy. Still, premiums typically cost between five and 15 times more than a term life insurance policy for the same benefit amount. 

A term life policy may provide a good match for someone seeking affordable coverage to replace lost income over a critical period, such as while raising children or paying off a mortgage. Whole life insurance offers options for those with more complex financial situations or someone desiring the security of lifetime coverage.

Coverage you can trust

Ethos term life policies are backed by established life insurance companies like Legal & General America, Ameritas Life Insurance Corp., and TruStage®. By combining Ethos' streamlined application with their coverage, we've shortened the application process to minutes, compared to weeks with traditional applications. With Ethos, you get the dependability of major insurers and the convenience of modern technology.

Why purchase with Ethos?
Expert advice
With a big financial decision, you may have some questions. You don't have to talk to an agent if you don't want to, but if you do, our licensed agents remain ready and eager to answer your questions. They're here to help you find the right life insurance term insurance policy for you.
Flexible coverage
With a term policy, life insurance can cover you anywhere from $20,000 to $2 million in protection. Ethos has policies for 10-, 15-, 20-, and 30-year terms so you can find the perfect timeline for your needs.
Fast process (no medical exams)
Our 100% online and hassle-free process makes it easy to apply. What traditionally took weeks can now be done in minutes, and you don't even need a medical exam (just answer a few health questions).
Free-look, money-back guarantee
Take your term life insurance policy for a trial run with a 30-day money-back guarantee. If you're not fully satisfied in the first 30 days, we'll refund you in full. After that time, you can cancel your policy with no cancellation fees.
What does term life policy cover?

It's ultimately up to your beneficiaries to decide how to use the cash payout. People often choose to help cover things like:

  • Home mortgages or rent
  • Lost income
  • Loans and debt
  • Children’s education
  • Living expenses
  • Funeral costs
How do term life policy claims and payouts work?

It's typically simple for your beneficiaries to file a claim and receive a cash payout with a term life policy. If you pass away while your coverage is in force, your beneficiary files a claim with your insurance carrier (as identified on your policy documents), and the carrier will issue the death benefit payout. Barring unusual complications, your beneficiary will receive an untaxed, lump-sum payment for the value of the policy's death benefit. For example, if you purchase $1 million in coverage, your beneficiary will receive a tax-free $1 million lump-sum payout.

Is there a chance the payout won’t be paid?

A claim may not be paid if underwriting finds that parts of the application were answered untruthfully or if the claim is the result of death by suicide within the first two years of the policy being in force.

What happens when my term ends?

If you do not pass away during your term, you have options when your term ends:

  • You can apply to extend your term to ensure you always have coverage.
  • You can apply for a new policy with a fresh term length and coverage amounts
  • You can decide to bypass extensions or not purchase a new policy
How does term life insurance work?

Term life insurance, commonly lasting from 10 to 30 years, ensures beneficiaries receive a death benefit if the policyholder passes away while coverage is in force. Term life insurance premiums are often more affordable than permanent life insurance policies because permanent life insurance policies are active for the policyowner’s lifetime as long as premiums are paid. Additionally, it's important to note that term life insurance does not accumulate cash value over time.

Can you cash out a term life insurance policy?

Term life insurance doesn't offer a cash value component, so policyholders can't cash out the policy. It's designed purely for death benefit coverage during the specified term, helping to provide financial protection for beneficiaries if the insured passes away within that period.

Do you pay taxes on life insurance cash out?

Generally, life insurance death benefits aren't subject to income tax. However, if you cash out a life insurance policy, any gains may be subject to taxation. Understanding the tax implications is crucial. Know more about the taxation of life insurance here.

What happens when a term life policy matures?

Upon the maturity of a term life policy, it means the policy term has ended. For term life insurance, there's no payout or cash value at maturity since it's designed to provide coverage during the term. Policyholders may explore renewing the policy or obtaining a new one if needed.

Have more questions?

Find the answers on the Ethos FAQ page.

How to purchase a policy
Choose coverage
Choose a policy that’s right for you. Ethos offers a range of coverage and term length options, so you can personalize your coverage to fit your needs.
Apply online
After you choose your plan, complete our online application. It’s simple, straightforward, and it only takes about 5 minutes.
Activate your coverage
Once your application is submitted, we’ll process the information to provide you a quick (sometimes instant) decision on coverage eligibility and your rate. If approved, you can activate your coverage immediately.
Get an instant quote

Nicotine use?
Used for estimate only.
Explore your options
Adjust the coverage amount and term length to find a plan you like. Then apply online (with no obligations) and get your real rate.

The estimated monthly rate for this policy is:

Coverage amount
Term length
10 years
Please note that all prices quoted are subject to change, including due to underwriting.