What is the typical duration of term insurance coverage?

Term insurance is designed to provide coverage for a specific period, which typically ranges from 10 to 30 years. This duration is appealing to many individuals because it aligns with significant financial responsibilities, such as raising children or paying off a mortgage, during which the need for insurance is often greater.

Policies within this range generally have fixed premium rates, ensuring that the policyholder knows exactly what they will pay for the duration of the term. If the insured passes away during this term, the beneficiary receives the death benefit. If the term expires and the insured is still alive, the coverage ends, and there is typically no payout. This structure makes term insurance a cost-effective option for many people who require insurance for a specific period without the high premiums associated with whole life or permanent insurance policies.

In contrast, options like annual premiums or lifetime coverage do not accurately reflect the term-based nature of this type of insurance, making them inconsistent with the typical characteristics of term life policies.