How Long Should Term Life Insurance Last? (Term Length Calculator)
Find the right term length for life insurance — 10, 15, 20, 25, 30, 35 or 40 years — from when your youngest child becomes independent, when the mortgage is paid off and when you retire.
How it works
Children: support age − youngest child’s age · mortgage: years left · income: retirement age − your age · longest need = max of the three · recommended term = the shortest standard term (10, 15, 20, 25, 30, 35, 40 years) ≥ longest need
Term life insurance only needs to last as long as someone depends on your income. Consumer guides from the NAIC and most insurers suggest matching the term to your longest financial obligation: until the youngest child is independent, until the mortgage is paid, or until you retire and your savings take over. Standard terms are sold in 5-year steps from 10 to 30 years, and some insurers offer 35 and 40; most stop issuing terms that would end after about age 80 to 95. Buying a slightly longer term costs little more than an exact fit and avoids a gap.
Worked example
A 35-year-old with a 3-year-old (supported to age 22), 25 years left on the mortgage and retirement planned at 65 has needs of 19, 25 and 30 years. The longest need is 30 years (income until retirement), so the recommended term length is 30 years, ending at age 65.
Sources: NAIC — Life insurance consumer roadmap · NAIC — Life insurance topics
Frequently asked questions
How many years of term life insurance do I need?
Enough to cover your longest obligation — usually until your youngest child is financially independent, your mortgage is paid off or you retire. For many young parents that means 20 to 30 years.
Is a 20-year or 30-year term better?
A 30-year term costs more per year but locks the price for longer and covers children born later. If your needs end within 20 years, the cheaper 20-year term is enough.
Can I combine policies of different lengths?
Yes — “laddering” several smaller policies (for example 30, 20 and 10 years) lets cover fall as your mortgage and child-raising costs shrink, often for a lower total premium.
What happens when the term ends?
Cover stops and no money is paid back unless you bought a return-of-premium policy. Many policies let you renew yearly at much higher prices or convert to permanent insurance without a medical exam.
Related calculators
Educational estimate, not insurance advice. Policy wording, deductibles, depreciation schedules, surcharges and clauses differ by insurer and country — read your policy and ask your insurer or a licensed agent before deciding.