Iliane Ramos

Term life coverage lasts only for a set period, often 10, 20, or 30 yr, not for life, so policy timing matters before signing.
When the term ends, coverage stops unless you renew, buy a new policy, or convert if allowed, and none of those steps happen automatically.
Premiums usually stay level during the chosen term, but renewal later can cost much more because age and new health issues reshape eligibility.
Some policies let you convert to permanent coverage without a new exam, while return-of-premium options may refund payments only if you outlive the term.
Choosing the right duration means matching coverage to income replacement needs, mortgage timing, children, and retirement, then reviewing yearly so protection does not lapse.

Life Insurance Coverage Has a Deadline

For a healthy 30-yr non-smoker, 20-yr term coverage of $500K ran roughly $25-$40 monthly, with age, health, amount, and policy type driving cost.
Age carried the heaviest pricing weight: a 40-yr-old paid roughly double a 30-yr-old, while smokers often paid two to three times more.
Term policies kept fees minimal. Permanent policies added cash value, front-loaded commissions, and early surrender charges, making them significantly costlier despite lifelong coverage options.
The cost-optimal strategy was maximum term protection when dependency peaked, then less coverage as debts cleared and children left home, with reviews every five years.
Life insurance was framed as risk transfer, not investing: premiums bought certainty for dependents, while policy payments supported future claims, operating expenses, reserves, and profit.