In most cases, life insurance death benefits are income tax-free for your beneficiaries. If your policy is kept in force, they will typically receive the full payout without owing federal income taxes. However, estate taxes may apply in certain high-value estates, and additional tax rules may affect payouts from certain types of policies. Consult a licensed agent or tax advisor for details.

Permanent life insurance policies offer tax-deferred growth on cash value, meaning you don’t pay taxes on earnings as long as the policy is active. You can also take loans or withdrawals from the policy — often without triggering income tax — depending on your plan structure. Surrendering or lapsing the policy, however, may result in taxable income.

Choosing a term life insurance length depends on your financial goals and responsibilities. Common considerations include the years left on your mortgage, your children’s education timeline, or your retirement goals. Popular term lengths include 10, 20, and 30 years — tailored to cover key life stages.

Yes — many term life insurance policies allow conversion to a permanent policy without a medical exam. This provides lifelong coverage and access to potential cash value accumulation, making it ideal if your long-term needs change.

After your initial term ends, you may be able to renew your term life insurance on an annual basis, usually up to age 95 (or age 80 in some states). Keep in mind that premiums typically increase each year. If you expect to need coverage longer, consider converting to a permanent policy before the term expires.