How long should life insurance coverage last?
Need answers on how long your life insurance coverage should last? Whole life insurance doesn't expire, but term policies do. Most term life insurance policies offer periods between 10 and 30 years and cost significantly less at about $20 per month, while permanent plans cost closer to $200 a month.
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Dani Best
Licensed Insurance Producer
Dani Best has been a licensed insurance producer for nearly 10 years. Dani began her insurance career in a sales role with State Farm in 2014. During her time in sales, she graduated with her Bachelors in Psychology from Capella University and is currently earning her Masters in Marriage and Family Therapy. Since 2014, Dani has held and maintains licenses in Life, Disability, Property, and Casualt...
Licensed Insurance Producer
UPDATED: Nov 27, 2023
It’s all about you. We want to help you make the right life insurance coverage choices.
Advertiser Disclosure: We strive to help you make confident life insurance decisions. Comparison shopping should be easy. We are not affiliated with any one life insurance company and cannot guarantee quotes from any single company.
Our life insurance industry partnerships don’t influence our content. Our opinions are our own. To compare quotes from many different life insurance companies please enter your ZIP code above to use the free quote tool. The more quotes you compare, the more chances to save.
Editorial Guidelines: We are a free online resource for anyone interested in learning more about life insurance. Our goal is to be an objective, third-party resource for everything life insurance-related. We update our site regularly, and all content is reviewed by life insurance experts.
UPDATED: Nov 27, 2023
It’s all about you. We want to help you make the right life insurance coverage choices.
Advertiser Disclosure: We strive to help you make confident life insurance decisions. Comparison shopping should be easy. We are not affiliated with any one life insurance company and cannot guarantee quotes from any single company.
Our life insurance industry partnerships don’t influence our content. Our opinions are our own. To compare quotes from many different life insurance companies please enter your ZIP code above to use the free quote tool. The more quotes you compare, the more chances to save.
On This Page
- The length of a life insurance policy depends on the type of coverage you buy
- Permanent plans never expire but usually cost more
- Term life policies generally last between five and 30 years, and are more affordable options
Although many assume that life insurance lasts a lifetime, that’s not always the case. In fact, some of the most popular plans last a set amount of years.
The amount of time your policy should last depends on your needs and budget. Buying a permanent plan means you’ll never have to worry about your insurance expiring. Term life insurance costs less but only lasts a set number of years.
So, how long should life insurance coverage last? While it depends on the type of life insurance you buy, the guidelines below can help you determine how long your coverage should last.
How to Calculate How Long Your Life Insurance Should Last
There are several factors to remember when figuring out how long you should keep your life insurance policy. These factors include your total income, outstanding debt, and dependents.
Although you have many choices, most needs are met by either term or whole life insurance. Whole life is a type of permanent life insurance, which means you’ll never worry about your coverage running out.
Term life insurance lasts a set number of years before expiring. If you die before your term ends, your beneficiary receives a payment. If you survive your term, your policy expires, and you’ll need a new one – unless you have renewable term life insurance.
Most term plans offer periods between five and 30 years. How long you should take out life insurance for depends on who you want to protect. For example, your term should at least last as long as your mortgage if you have a spouse or partner.
How to Determine the Amount of Life Insurance Coverage You Need
While figuring out how long life insurance policies last is important, you should also know how much life insurance you need.
The easiest way to determine how much coverage you need is to look at your annual income, large debts, and dependents. If you have children, you should also set aside money for future college expenses.
Of course, if you have questions about how much term life insurance you need, you can always ask a representative for help.
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Life Insurance Policy Length: Term vs. Whole Life Insurance
You know how long whole life insurance is, and you know how long term life insurance lasts depends on the plan you want. However, there are more things to consider before you choose between whole and term insurance.
For example, whole life costs significantly more than term. Check the table below to get an idea of how much you might pay for either permanent or term life insurance.
Term vs. Whole Life Insurance Monthly Rates by Age & Gender
| Policyholder Age | Term Life - Males | Term Life - Females | Whole Life - Males | Whole Life - Females |
|---|---|---|---|---|
| 25-Year-Old | $15 | $13 | $94 | $85 |
| 35-Year-Old | $15 | $14 | $128 | $113 |
| 45-Year-Old | $22 | $20 | $191 | $243 |
| 55-Year-Old | $44 | $34 | $295 | $422 |
| 65-Year-Old | $106 | $73 | $528 | $204 |
Buying whole life insurance is a significantly larger investment than term life, but it might be worth it if you never want to worry about what happens when life insurance ends.
Term Life Insurance Lasts for a Specified Amount of Time
Although term life insurance is more affordable, it doesn’t last forever. If you’re worried about what happens after 20 years of paying life insurance, you might want to consider a permanent plan.
Term life insurance costs less than whole, but the exact amount you’ll pay depends on the length of your policy. Shorter policies have lower rates but expire faster. Check below to get an idea of how much you’ll pay depending on the length of your policy.
Term Life Insurance Average Monthly Rates by Policy Length
| Term length | Male | Female |
|---|---|---|
| 10 years | $17 | $15 |
| 20 years | $29 | $24 |
| 30 years | $49 | $39 |
Term life policies are often renewable, so you can continue the policy after the policy ends. An insurance representative can help you figure out how to renew your life insurance or how to buy term life insurance.
Whole Life Insurance Lasts for the Policyholder’s Lifetime
Although these plans are permanent, your life insurance can be canceled if you don’t pay every month.
Whole life is the most popular permanent policy, but you can also buy a universal life insurance plan. If you’re interested in a permanent plan, you should research the difference between whole and universal life insurance.
Life Insurance Policies Can Expire
Wondering what happens when your term life insurance ends? Typically speaking, there are three options when your life insurance ends — go without coverage, buy a new plan, or renew your policy.
While you don’t have to worry about what age life insurance expires, you might run into trouble if you decide to buy a new plan. Many life insurance companies limit how old you can be to buy a new policy, usually between 75 and 80.
If you’re wondering how long to keep expired life insurance policies, it’s usually a good idea to renew until you no longer need life insurance.
Case Studies: How Long Should Life Insurance Coverage Last?
Case Study 1: Sarah’s Secure Future with Whole Life Insurance
Sarah, a 35-year-old married woman with two young children, wanted to ensure long-term financial protection for her family. After careful consideration, Sarah decided to purchase a whole life insurance policy that would provide coverage for the rest of her life.
This permanent policy gave her peace of mind, knowing that her family would be financially secure even after her passing.
Case Study 2: Mark’s Cost-Effective Term Life Insurance
Mark, a 30-year-old single professional, was looking for affordable life insurance coverage that would meet his current needs. He didn’t have dependents and wanted a policy that would provide protection during his working years.
Mark opted for a 20-year term life insurance policy, which offered coverage at a significantly lower premium compared to whole life insurance. This allowed him to allocate more funds towards his other financial goals while still having adequate coverage for the next two decades.
Case Study 3: Emily’s Lifetime Protection with a Combination of Policies
Emily, a 45-year-old business owner and mother of three, recognized the importance of both long-term coverage and affordability. She decided to combine a whole life insurance policy with a term life insurance policy.
The whole life policy provided permanent coverage to ensure her family’s financial stability, while the term life policy covered her mortgage and other financial obligations for the next 20 years. This combination of policies allowed Emily to have comprehensive protection tailored to her specific needs.
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Life Insurance Coverage Lasts as Long as the Policy Type
How long your life insurance lasts depends on the type you buy – whole policies last the rest of your life, while term expires after a set period of years.
Choosing the right type of policy will help you find the most affordable coverage, but there are other ways to save. One of the most important is finding cheap life insurance companies. Make sure to compare quotes with as many companies as possible to find the best coverage for you, no matter how long you want it to last.
Frequently Asked Questions
How much life insurance do you need?
When you’re trying to figure out how long life insurance should last, knowing how much you need is important. Generally speaking, your life insurance should cover your income, outstanding debts, and dependents.
What happens if you live longer than your term life insurance?
If you outlive your term life insurance, you’ll probably be able to renew it until you no longer need it. A representative can tell you how to renew your life insurance with your company.
Do you need life insurance?
Life insurance is a worthwhile investment if your dependents rely on your income. For example, your life insurance benefit can be used to pay off a mortgage or college tuition.
What is the ideal length of a life insurance policy?
How long life insurance should last depends on your situation. Ideally, your life insurance should last long enough to cover your mortgage and help with college expenses for your children.
Do you need life insurance after 65?
If you have a mortgage, dependents, or large outstanding debts, you should consider having life insurance after 65. There is no age life insurance expires, so you can keep renewing your policy for as long as you need it.
What factors affect the length of your life insurance policy?
The main factor that affects how long life insurance policies last is whether you choose a term or whole life plan.
Should you choose term or permanent life insurance?
The right policy for you depends on a few factors, but term life insurance meets most people’s needs.
What age does life insurance expire?
Life insurance doesn’t expire at a specific age. If you have term life insurance, your plan will expire at the end of your policy. However, many companies stop selling new policies after a certain age, usually between 70 and 80.
Is it better to have term or whole life insurance coverage?
It depends on what you want. People who want to buy a policy that never expires and accumulates cash value should consider whole life. Term life is more affordable and usually meets most people’s life insurance needs.
What if your financial situation changes after you purchase life insurance?
Unfortunately, you can’t get a refund on life insurance if you decide to cancel it. If you find yourself in a tough financial situation, call your insurance representative to see if they can help.
Your life insurance quotes are always free.
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Dani Best
Licensed Insurance Producer
Dani Best has been a licensed insurance producer for nearly 10 years. Dani began her insurance career in a sales role with State Farm in 2014. During her time in sales, she graduated with her Bachelors in Psychology from Capella University and is currently earning her Masters in Marriage and Family Therapy. Since 2014, Dani has held and maintains licenses in Life, Disability, Property, and Casualt...
Licensed Insurance Producer
Editorial Guidelines: We are a free online resource for anyone interested in learning more about life insurance. Our goal is to be an objective, third-party resource for everything life insurance-related. We update our site regularly, and all content is reviewed by life insurance experts.
