Term Life Insurance

Term life or term insurance is simple: You determine the right amount of coverage you need (with the help of your advisor), then you figure out for how long you need coverage for and choose from the available periods. Once that time is up, so is your coverage. Looking for coverage that's more permanent? Our whole life insurance lasts your entire life and has other benefits that you can use along the way. See how term life compares to our other types of life insurance.

We have term insurance policies for 10 and 20 years or until you turn 80 years of age, but once those terms end, so does your coverage.

Surprisingly so, but the cost depends on things like your age, health, as well as the amount and length of coverage you need. A $500k policy with coverage up to age 80 for a 35-year-old female will initially cost about 69¢ per day, and for a 35-year-old male it's only 84¢ per day initially.¹ The best way to get an accurate quote is to talk to an advisor.

It depends on the type of coverage you get. We offer two: annual renewable and level premium.

Annual renewable term life insurance gives you coverage at a lower initial cost, but the premiums will increase every year as you get older.

• Term 80 is our longest coverage term that lasts until age 80.

• Term 10 is our most affordable coverage that lasts for up to 10 years.

With level premium term life insurance, your premiums will stay the same throughout the term.

• Level Term 20 covers you for 20 years and your premiums will not go up throughout the entire period.

• Level Term 10 also gives you coverage for 20 years, but the premiums will increase for the second 10-year period.

Talk to an advisor about which type of term life is right for you.

Once the term of your policy ends, so does your coverage. Ideally, you wouldn't need it anymore. But if you're in a situation where you still have loved ones who rely on you financially or mortgage payments, you might want to consider buying a new policy. With a term policy from Northwestern Mutual, you can convert some or all of it to a whole life policy that gives you lifelong coverage² and builds cash value you can use for anything throughout your life.³ Connect with an advisor to explore your options.

It's a great perk, but life insurance offered through your employer usually won't give you the amount of coverage you may need. Typically, you want at least 10 times your annual salary, but many employers offer only one to two times your annual salary. Also, if you leave your job or go out on your own, you can't take your coverage with you. And when it comes to affordability, the younger you get covered the less expensive it will be. Calculate how much life insurance coverage you'll need.

Each type has unique benefits, and many people use a combination of both to help them reach their short and long-term goals. The biggest difference is that term life insurance covers you for a set amount of time and is likely to be less expensive than whole life insurance. On the other hand, whole life insurance covers you for life and it has a lot more you can use throughout your life. It gives you the chance to increase coverage as your needs change. Whole life builds cash value over time (tax-deferred) that you can use for anything.³ Plus, it can earn dividends (while not guaranteed, we've paid them every year since 1872) that can be taken as cash, used to pay premiums, or buy more coverage. Find out the pros and cons of term life vs. whole life.

Decreasing term life insurance is a type of life insurance policy where the death benefit decreases over the policy's term, while the premium typically remains the same. It's often used to align with outstanding debts like a mortgage or other loan. For example, if you have a 20-year mortgage, you could purchase a 20-year decreasing term life insurance policy. As you pay down your mortgage, your coverage would decrease accordingly. This makes it a cost-effective option for people who want affordable coverage that decreases in proportion to their decreasing liabilities. However, decreasing term life can be hard to find. We don't even offer it at Northwestern Mutual. However, our advisors can design a customized solution with our annual renewable term or level premium term policy that can get you similar coverage.

Level term life insurance covers you for a specified period with a fixed premium. This means you'll pay the same premium amount each month, and if you pass away within specified period, your beneficiaries will get a fixed death benefit.

It's designed to offer straightforward, predictable financial protection, making it a popular choice for those seeking to cover things like a mortgage, children's education, or to replace income. At the end of the term, the policy expires. However, as a Northwestern Mutual term policyowner, you have the opportunity along the way to convert some or all of your term coverage into a whole life policy.

Get more details on how Level Term Life Insurance works.

Term life insurance does not build cash value like whole life, universal life, or variable universal life does. That means as you make payments, part of it won't go toward building a pool of money over time. This savings component typically grows tax deferred⁴ and gives you the option to withdraw or borrow against it for whatever you need throughout your life. It can come in handy for unexpected expenses, paying for college, expanding your business, upgrading your home, or as additional income in retirement.³ Connect with an advisor to explore your options.

Our term life insurance policies have an optional waiver of premium rider to give you more flexibility. This benefit lets you stop paying your life insurance premiums if you ever experience a qualifying disability, while still keeping your coverage with no reduction to the death benefit. Learn more about our insurance riders or ask an advisor which one is right for you.

When you're younger, term life insurance can be a simple way to protect your loved ones. But as life changes your financial priorities can too, so you may want to have whole life insurance for its lifetime coverage and additional benefits that you can use while you're living. That's where a term conversion comes in.

As a Northwestern Mutual term policyowner, you can convert some or all of your term coverage into a whole life policy. Approval is guaranteed regardless of your health. The premiums won't increase once they're set⁵ but the longer you wait the more expensive they'll be, so it's a good idea to lock them in early. Find out more about how a term conversion works.