Northwestern Mutual

Term Life Insurance

Learn how term life insurance can provide a level of financial protection and security for your family at an affordable cost.

Term Life Insurance

What is term life insurance?

Term life insurance provides coverage for a specific period of time, or “term” (for example, 10 or 20 years or to a specific age, such as 80).

Term life insurance is one of the most affordable types of insurance you can buy. In return for its affordability, however, term life insurance policies do not build cash value (as is the case with permanent life insurance), and when the term of the policy ends, so does your coverage. That means your loved ones won’t receive a payment (the death benefit) from your policy should you pass away after the term ends.

Term or Permanent Life Insurance White Paper

Is term life insurance right for you?

Term life insurance can be an attractive choice if you’re looking for:

  • A high level of coverage when dollars are tight.
     One of the biggest advantages of term life insurance is its lower initial cost when compared to permanent life insurance. This enables you to buy high levels of coverage for a set amount of time when you need it most.
  • Protection to meet shorter-term needs.
     Depending on your situation, you may not need life insurance protection after you reach a certain age or stage of your life. For example, if you want to make sure your mortgage is paid off or your children are able to pay for college should something happen to you, term life insurance can help provide protection for only the years you need.
  • A policy that can be customized.
     Term life insurance offers a high level of flexibility. You choose the amount of death benefit protection you want and the length of the term (usually 10 or 20 years).

Learn more about our term products.

Term First, Permanent Later

Because of its affordability, many of our clients start by purchasing term life insurance and then, as their wealth and assets grow, convert some or all of their policy to permanent life insurance to give their family an even greater level of financial security. Many term life insurance policies come with the ability to convert to permanent insurance without having to take an additional health exam. That means if you convert to permanent insurance, your new premiums are based on your health status when you initially bought your term policy.1 A Northwestern Mutual financial professional can share more about the benefits of term-to-permanent conversion.

The Northwestern Mutual Difference

For nearly 160 years, Northwestern Mutual has helped policyowners meet life’s challenges. We have the highest financial strength ratings awarded to any life insurer by all four of the major credit rating agencies.2 We pay industry-leading dividends3, which many policyowners use to increase the value of their policies. Our clients believe in us and return for more. In a typical year existing clients account for more than half of our life insurance sales.4

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