Term life insurance is the simplest form of life insurance. You pay a fixed monthly premium for a set period (typically 10, 15, 20, or 30 years). If you die during that term, your beneficiary receives the death benefit as a tax-free lump sum. If you outlive the term, the policy ends and there's no payout.

Think of term life as rented coverage: you're buying protection only for the years you need it most, usually while you have a mortgage, young children, or dependent income. Because the insurer expects most policyholders to outlive their term, premiums are far lower than permanent insurance like whole life.

The vast majority of life insurance sold in the United States is term life. It does one job: pay your family if you die before they're financially independent. For most Louisiana families that's exactly the right job.

Sources: NAIC Life Insurance Buyer's Guide; Insurance Information Institute on term life insurance.

The two products do very different jobs:

• Coverage length. Term covers 10, 20, or 30 years then ends. Whole life covers your entire lifetime.
• Cost. Term is roughly 5 to 15 times cheaper than whole life for the same death benefit. A healthy 30-year-old might pay $26 a month for $500,000 of 20-year term versus $451 a month for the same amount of whole life.
• Cash value. Whole life builds cash value you can access via loans. Term has no cash value.
• Premium structure. Term premiums are fixed for the initial term and then renew at much higher rates. Whole life premiums are fixed for life.
• Purpose. Term is designed for income replacement and debt coverage during working years. Whole life is designed for permanent coverage, estate planning, and tax-advantaged cash value growth.

For most people protecting income during working years, term life is the right answer because it costs far less per dollar of coverage. A common approach is to buy a large term policy when you're young and growing your family, then layer a smaller permanent policy on top later for legacy or final expense purposes.

Sources: Policygenius 2026 rate analysis; Insurance Geek 2026 term vs whole comparison; NAIC Life Insurance Buyer's Guide.

Term life is one of the cheapest insurance products you can buy. Premiums depend on your age, gender, health, tobacco use, term length, and coverage amount. Approximate 2026 monthly costs for a healthy non-smoker buying $500,000 of 20-year level term life:

• Age 30: $18 to $24 per month for a man, $15 to $20 for a woman
• Age 40: $28 to $35 per month for a man, $24 to $30 for a woman
• Age 50: $69 to $99 per month for a man, $55 to $80 for a woman
• Age 60: $200 to $260 per month for a man, $145 to $190 for a woman

Three factors drive most of the price differences you'll see:

• Age. Premiums roughly double every 10 years. A 40-year-old pays about half what a 50-year-old pays for the same policy.
• Health class. Preferred Plus, Preferred, Standard Plus, Standard, and Substandard each price differently. The spread between Preferred Plus and Standard can be nearly 100 percent for the same age and policy.
• Tobacco use. Smokers and tobacco users typically pay 50 to 150 percent more than non-tobacco users.

Term length also matters. A 30-year term costs roughly 50 to 70 percent more per month than a 20-year term for the same age and coverage. A 10-year term is the cheapest option but rarely the best choice for a homeowner with young kids.

Sources: Insurance Geek 2026 term life rate analysis across 30+ A-rated carriers; MoneyGeek 2026 rate charts; Policygenius rate data.

Match the term length to the longest financial obligation you want to protect. Common scenarios:

• 10-year term. Best for short-term debts (a car loan, an SBA loan, a 10-year mortgage), or as supplemental coverage layered on top of a longer policy. Cheapest option per month.
• 15-year term. Reasonable middle ground if you have a 15-year mortgage or your kids are old enough that they'll be financially independent in 15 years.
• 20-year term. The most common choice. Lines up with a 30-year mortgage that's already been paid down for several years, or with the time until young kids finish college.
• 30-year term. Best for young families with a new mortgage and small children. Locks in your rate from your 30s or early 40s through age 60+ when buying new coverage becomes expensive or impossible.

A useful rule: buy the longest term you can afford if you have young dependents or a long mortgage. Term premiums are based on your age at issue. Buying 30-year term at age 30 locks in a low rate for three decades. Buying 20-year term and then trying to get a new policy at age 50 will cost you several times more.

For Louisiana families with a 30-year mortgage and young kids, a 30-year term policy is almost always the right answer mathematically, even though the monthly premium is slightly higher.

Sources: NAIC Life Insurance Buyer's Guide; MoneyGeek 2026 term length analysis; Insurance Information Institute consumer guidance.

A common starting point is 10 to 12 times your annual income, but the right number depends on your specific obligations. Build it from the bottom up:

• Mortgage balance. The full remaining balance, so your family can pay off the house and live without that monthly payment.
• Income replacement. Multiply your annual after-tax income by the number of years your dependents need support. A spouse with three young children may need 15 to 20 years of income replacement. A spouse with no kids and their own career may need 5 to 10 years.
• Children's education. Approximately $25,000 to $35,000 per year per child for in-state public college; double for out-of-state or private.
• Other debts. Credit cards, car loans, personal loans, student loans not covered by federal forgiveness at death.
• Final expenses. $10,000 to $20,000 to cover funeral, burial, and estate settlement.
• Existing coverage. Subtract any group life through your employer and any existing individual policies.

The resulting number is your total coverage need. For most Louisiana families with kids and a mortgage, this falls between $500,000 and $1,500,000 of term life. Buying more than you need wastes premium. Buying less leaves your family short.

If you can't comfortably afford the full coverage amount, buy as much as you can afford right now and add a second policy later. Some coverage is far better than no coverage.

Sources: NAIC Life Insurance Buyer's Guide on coverage amount calculation; Insurance Information Institute; ACLI consumer guidance.

It depends on your age, the coverage amount, and the carrier. Three common paths:

• Fully underwritten with medical exam. The traditional path. A paramedical examiner visits your home or workplace to take height, weight, blood pressure, and blood and urine samples. The insurer also reviews medical records, prescription history, and motor vehicle reports. Decision typically comes back in 3 to 6 weeks. Best rates for healthy applicants.
• Accelerated underwriting (no exam). Increasingly common for healthy applicants under 50 buying up to $1 million to $2 million. Uses electronic data sources (Medical Information Bureau, prescription history, motor vehicle records, public records) instead of a medical exam. Decision in days. Rates can match fully underwritten rates for clean profiles.
• Simplified issue. Available for smaller coverage amounts (typically under $250,000 to $500,000). Short health questionnaire only. Higher premium per dollar of coverage than fully underwritten, but no exam and faster issue.

If you're healthy and under 50, ask your agent whether accelerated underwriting is available; many top carriers now offer it. If you're older or have health conditions, fully underwritten with a medical exam usually produces the best rate.

Sources: NAIC consumer guidance on underwriting; Insurance Information Institute on accelerated underwriting; LIMRA underwriting research.

Three common term life variations:

Level term. The most common form. Death benefit and premium are both level (constant) for the entire term. If you have a $500,000 20-year level term policy, the death benefit is $500,000 in year 1 and $500,000 in year 20. Best for income replacement and overall family protection.

Decreasing term. The death benefit decreases over the term, usually matching a declining mortgage balance. Premium typically stays level. Often sold as mortgage protection insurance through lenders. Less common today because level term has become so affordable that decreasing term offers limited cost savings.

Return of premium term. If you outlive the term, the insurer refunds all premiums paid (or a portion). Premium runs roughly 60 to 100 percent higher than equivalent level term. Sometimes marketed as a savings vehicle, but the "savings" is just your own money returned with no interest, after years of letting the insurer hold it. Most consumer advocates and the NAIC recommend buying cheaper level term and investing the premium difference instead.

For most Louisiana families, plain level term gives the best protection per dollar. Decreasing term and return of premium have niche uses but aren't usually the right choice.

Sources: NAIC Life Insurance Buyer's Guide on term variations; Insurance Information Institute; Insurance Geek 2026 term type analysis.

The policy ends. There's no death benefit payable and (for standard level term without a return of premium rider) no refund of premiums paid.

That's the trade-off: term life is cheap because most people outlive their term. The insurer prices the policy assuming you'll probably outlive it and uses the saved premium dollars to pay claims for the small percentage who don't.

If you still need coverage when your term ends, you have four options:

1. Convert to permanent insurance (if your policy includes a conversion option and you're still in the conversion window). No new medical exam required (see question 10).
2. Renew the existing policy as annual renewable term (usually allowed without new underwriting, but premiums increase dramatically each year). See question 9.
3. Apply for a new term policy at your current age and health. Premium will be much higher than your original policy but lower than continuing the renewal.
4. Let the coverage end if you no longer need it (kids are grown, mortgage paid off, retirement savings sufficient).

Plan ahead. Your insurance needs at age 65 may be very different from your needs at age 35. Review every 5 years and adjust.

Sources: NAIC consumer guidance on term life expiration and renewal; Insurance Information Institute.

Most level term policies include an annual renewable term (ART) provision that lets you keep the policy in force after the initial term ends, with no new medical exam. The trade-off: the premium recalculates every year based on your current (older) age and is far higher than your locked-in rate during the level term.

Example: a 35-year-old buys a $500,000 20-year level term at $25 per month. Through age 55, the premium stays $25. If they renew under ART at age 55, the premium might jump to $200 per month in year 1, $230 in year 2, $265 in year 3, and so on. By age 60 it can exceed $500 per month. By age 70, $2,000 per month is typical. Most policies cap renewability at age 80 or 95.

ART makes sense for short bridges (six to 24 months) while you're applying for new coverage or converting. It's almost never a good long-term choice. If you'll need permanent coverage past the term, plan to convert before the conversion window closes (see question 10) or apply for new coverage 6 to 12 months before your term ends.

Sources: NAIC Life Insurance Buyer's Guide on renewability provisions; Insurance Information Institute.

Yes, if your term policy includes a conversion option (most level term policies sold today do). Conversion lets you exchange your term for a permanent policy from the same insurer without a new medical exam.

Key rules:

• Conversion window. Typically the first 10 to 20 years of the policy, or until a specific age (age 60, 65, or 70 are common cutoffs). After the window closes, conversion is no longer available.
• No new underwriting. Your health on the conversion date does not matter. The new policy is issued at the original health class from the term policy.
• New premium. Based on your current age and the original health class. Premium goes up significantly because permanent insurance costs more, but you keep your original health rating even if your health has declined.
• Partial conversion allowed. Many carriers let you convert just a portion of the term policy (for example, $200,000 of a $500,000 term policy) and let the remainder run out as term.

Conversion is most valuable when your health has gotten worse and you wouldn't qualify for new permanent coverage. It locks in lifetime coverage at your original (better) health class. Check your term policy's conversion provision and the window closing date. If you don't see it on the declarations page, ask your agent.

Sources: NAIC Life Insurance Buyer's Guide on conversion options; Insurance Information Institute on term-to-permanent conversion.

For level term policies (the standard product), no. Your premium is locked in for the entire term: 10, 15, 20, or 30 years depending on what you chose. The rate you pay in year 1 is exactly the rate you pay in the final year of the term.

Two exceptions to be aware of:

• Annual renewable term (ART). Some workplace coverage and some specialty policies are written as ART, where the premium recalculates and increases every single year based on your current age. If your policy declarations page shows "annual renewable" instead of "level term," your premiums are not locked.
• Tobacco status change. Most carriers allow you to re-rate the policy to a non-tobacco rate if you've been tobacco-free for 12 to 24 consecutive months. This is a premium reduction, not an increase, and requires you to actively request the re-rating.

For level term, the contract guarantees your premium stays the same. The insurance company can't raise your rate mid-term even if your health changes or claims experience for the carrier worsens.

Sources: NAIC Life Insurance Buyer's Guide on level term premium guarantees; Insurance Information Institute.

Riders are optional add-ons that expand your coverage. Common term life riders include:

• Waiver of premium for disability. If you become totally disabled before age 60 or 65, the insurer waives your premiums but keeps the policy in force. Adds modest cost. Worth considering for almost everyone.
• Accelerated death benefit (terminal illness). If you're diagnosed with a terminal illness and given a limited life expectancy (typically 12 to 24 months), you can access part of the death benefit (typically 25 to 75 percent) while still alive. Usually no additional cost. Now standard on most term policies.
• Critical illness rider. Pays a lump sum if you're diagnosed with a covered illness (cancer, heart attack, stroke). Adds cost. Useful if you have limited savings to cover treatment.
• Chronic illness rider. Pays an accelerated portion of the death benefit if you can't perform 2 of 6 activities of daily living. Adds cost.
• Disability income rider. Pays a monthly benefit if you become totally disabled. Less common than waiver of premium.
• Child term rider. Adds modest coverage (typically $5,000 to $25,000) on all your children for low cost. Usually convertible to permanent coverage when the child reaches a certain age.
• Spouse term rider. Adds a smaller term policy on your spouse to your main policy. Can be cheaper than two separate policies for small amounts.
• Return of premium rider. Refunds all premiums if you outlive the term. Adds 60 to 100 percent to premium. See question 7 for the trade-off analysis.

The two riders almost every applicant should consider: waiver of premium and accelerated death benefit. Beyond those, riders depend on your specific situation and budget.

Sources: NAIC consumer guidance on life insurance riders; Insurance Information Institute on optional benefits.

Yes, term life can be declined or rated higher for various reasons. Common decline triggers:

• Currently in hospice or diagnosed terminally ill
• Recent cancer diagnosis (within 1 to 5 years depending on type and carrier)
• Heart attack, stroke, or major cardiac event in the past 6 to 12 months
• Active dialysis or organ transplant pending
• Substance abuse or DUI within the past 1 to 3 years
• Certain high-risk occupations or hobbies (some military, professional racing, sport diving)
• High BMI combined with other health markers

Being declined by one carrier doesn't mean you're uninsurable. Carriers underwrite differently, and the same applicant can be declined by one and approved by another. An independent agent who works with 20 to 30 carriers can typically find an approval where the first carrier said no.

If standard term is unavailable, alternatives include simplified-issue term (smaller coverage, easier underwriting), guaranteed-issue final expense (no health questions, smaller benefit, 2-year graded period), or coverage through a group plan at work that doesn't require individual underwriting.

Sources: NAIC consumer guidance on underwriting decisions; Insurance Geek 2026 carrier underwriting analysis; Insurance Information Institute.

Generally no. Life insurance death benefits paid to a named beneficiary are received income-tax-free under IRC §101(a). Louisiana does not impose state income tax on inherited life insurance proceeds.

Exceptions where part of the death benefit may be taxable:

• Transfer for value. If the policy was sold or transferred to another party for valuable consideration before death, part of the benefit may become taxable income to the new owner.
• Installment payouts. If the death benefit is paid in installments instead of a lump sum, the interest portion of each installment is taxable as ordinary income.
• Estate tax. If the deceased owned the policy at death, the death benefit is included in their gross estate for federal estate tax purposes. Only matters for estates above the federal exemption (over $13 million per individual in 2026, with potential adjustments going forward).
• Group employer term over $50,000. If your employer provides over $50,000 of group term life, the imputed cost of the excess coverage is taxable as income while you're alive (reported on your W-2). The death benefit itself remains tax-free to your beneficiary.

For most Louisiana families, the entire death benefit arrives tax-free to the beneficiary.

Sources: IRC §101(a) and §79 (group term); IRS Publication 525; Louisiana Department of Revenue.

Yes. You can name as many beneficiaries as you want and split the death benefit any way you choose. Common arrangements:

• Primary beneficiary only. One person (typically a spouse) receives 100 percent of the death benefit.
• Multiple primary beneficiaries. Two or more people receive specified percentages that total 100 percent (for example, three children at 33.33 percent each).
• Primary plus contingent beneficiaries. Primary beneficiary receives the benefit if alive; contingent beneficiary receives it only if the primary has died before you.
• Per stirpes vs per capita. Per stirpes means if a named beneficiary dies before you, their share passes to their descendants. Per capita means surviving beneficiaries split the deceased beneficiary's share equally. Default varies by carrier; you can usually specify either.

Louisiana community property note: Louisiana is a community property state. If you name a non-spouse beneficiary on a policy funded with community property assets, your surviving spouse may have a community property claim against part of the death benefit. For couples in this situation, getting your spouse's written consent on the beneficiary designation avoids disputes later.

Always name a contingent (backup) beneficiary. If your primary beneficiary dies before you and there's no contingent named, the death benefit defaults to your estate, which triggers probate and potential creditor claims. Naming a contingent prevents that.

Review beneficiary designations after every major life event: marriage, divorce, birth, death, estate plan change.

Sources: NAIC Life Insurance Buyer's Guide on beneficiary designations; Louisiana Civil Code on community property; Insurance Information Institute.

Every life insurance policy sold in Louisiana includes a 10-day free look period under Louisiana Revised Statutes §22:931. After your policy is delivered, you have 10 days to review it and cancel for any reason for a full refund of premiums paid, with no penalty.

Louisiana extends the free look to 20 days in two situations:

• The policy is replacing an existing life insurance policy you already own
• The applicant is age 65 or older

The free look starts on the day the policy is delivered to you, not the day you apply. Use the period to:

• Verify the death benefit, premium, and beneficiary designation match what you agreed to
• Confirm the term length is what you applied for (especially that you bought level term, not annual renewable term)
• Read the conversion provision and note the conversion window deadline
• Confirm any riders you ordered are included on the declarations page

If anything is different from what was sold or you simply change your mind, cancel during the free look period and you get every premium dollar back.

Sources: Louisiana Revised Statutes §22:931; Louisiana Department of Insurance Life Insurance Guide (Commissioner Tim Temple).

Louisiana law requires every life insurance policy to include a two-year incontestability clause under Louisiana Revised Statutes §22:931. During the first two years after policy issue, the insurance company can contest a death claim if they can prove the application contained a material misrepresentation (a meaningful misstatement or omission about health, occupation, lifestyle, or other underwriting facts).

After two years from the issue date, the insurer can no longer contest the policy based on application errors, with two exceptions: nonpayment of premium and the suicide exclusion (also limited to two years; see question 18).

Under Louisiana law (LA R.S. §22:860), to deny a claim for misrepresentation the insurer must prove both:

• The misstatement was made with intent to deceive, and
• It materially affected the risk the insurer accepted

This dual-prong test is more protective of beneficiaries than the standards in many other states. A small honest mistake on the application that didn't actually change the underwriting outcome generally won't void the policy in Louisiana.

Best practice: answer every application question completely and honestly. The 2-year window is short, but during it, application errors can become claim challenges. After 2 years, the policy is effectively locked in.

Sources: Louisiana Revised Statutes §22:931 and §22:860; Louisiana Department of Insurance consumer guidance; OpenExamPrep Louisiana life policy requirements.

Louisiana life insurance policies include a two-year suicide exclusion. If the insured dies by suicide within the first two years of the policy, the insurer pays a return of premiums paid rather than the full death benefit. After two years, suicide is covered like any other cause of death and the full death benefit is paid.

This is one of the standard provisions allowed under Louisiana Revised Statutes §22:860 and is consistent with national insurance industry practice. The two-year window is intended to discourage someone from buying coverage with the intent to provide for their family through suicide.

The provision applies only to suicide. Other causes of death during the first two years are covered fully (subject to the contestability period; see question 17). After the two-year mark, the death benefit is paid for any cause of death, including suicide.

If you or someone you know is experiencing thoughts of suicide, the 988 Suicide and Crisis Lifeline is available 24/7 by call or text at 988.

Sources: Louisiana Revised Statutes §22:860; NAIC consumer guidance on suicide exclusion provisions; standard industry policy language.

Louisiana law requires every life insurance policy to include a 31-day grace period for premium payments after the first one. If you pay within 31 days of the due date, no penalty and no coverage gap. The policy continues normally.

If you don't pay within 31 days, the policy lapses. The death benefit ends. Once a term policy lapses your options become:

• Reinstate the policy within the reinstatement window (typically 3 to 5 years from lapse) by paying all back premiums with interest, and possibly answering updated health questions.
• Apply for a new policy. This means new underwriting at your current (older) age, and your premium will be higher than the lapsed policy.

Unlike whole life, term policies have no cash value, so there are no nonforfeiture options. Once a term policy lapses, you either reinstate it or buy new coverage.

The simplest protection: set up autopay from a bank account or credit card. Most accidental lapses come from people on monthly billing who change banks, lose a card, or move and miss a paper invoice. Annual billing also reduces lapse risk (one payment per year instead of 12 chances to miss).

Sources: Louisiana Revised Statutes §22:931 (grace period and reinstatement); NAIC consumer guidance on lapse and reinstatement.

The beneficiary contacts the insurer directly or contacts your independent agent for help. They submit:

1. A certified copy of the death certificate
2. The original policy (or policy number if the original is missing)
3. A completed claim form (insurer provides on request)
4. Proof of identity for the beneficiary

Most Louisiana term life claims pay within 14 to 30 days of complete documentation. Some carriers pay within a week for uncontested claims with clean documentation.

Possible reasons for a longer timeline:

• Death during the contestability period. If the insured dies within the first 2 years of the policy, the insurer may investigate the application for material misrepresentation before paying. Can extend timeline to 60 to 90 days.
• Suicide within 2 years. Triggers the suicide exclusion: insurer returns premiums paid rather than the full death benefit.
• Beneficiary disputes. Multiple parties claiming the death benefit (especially common in Louisiana with community property considerations) can extend the process.
• Missing or incomplete documentation. The insurer holds the claim until they have complete paperwork.

Louisiana law (LA R.S. §22:1821 and §22:1973) requires prompt claim handling and imposes penalties for unjustified delays. If a claim is delayed beyond 60 days without clear reason, the Louisiana Department of Insurance handles consumer complaints at ldi.la.gov or 1-800-259-5300.

Tell your beneficiary where the policy is stored and how to contact the insurer or your independent agent. Unclaimed life insurance is most often caused by families who don't know a policy exists. The NAIC operates a free Life Insurance Policy Locator service.

Sources: Louisiana Revised Statutes §22:1821 and §22:1973 (timely claim handling); NAIC Life Insurance Policy Locator; Louisiana Department of Insurance consumer protection.