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15-Year Term Life Insurance: How It Works & Who Needs It

August 08, 2023
Our goal is to educate and advise on life insurance options, so you can feel confident in making the right choice, whether that’s through Quotacy or somewhere else. To ensure we provide accurate and trustworthy information, our writers follow strict editorial standards.

The primary purpose of life insurance is to replace a provider’s income. A 15-year term life insurance policy is a great option to cover the needs of your loved ones.

In this guide, you’ll learn when a 15-year term policy makes sense and how much it costs.

What Is a 15-Year Term Life Insurance Policy?

Term life insurance provides coverage for a set period. Policy owners can choose from many term lengths, ranging from 10-40 years.

How does a 15-year term policy work?

  • As long as premiums are paid, coverage lasts 15 years
  • If the insured passes away in those years, death benefits are paid to beneficiaries
  • Coverage expires if the insured outlives the policy
  • The owner may be able to renew or convert the coverage at a higher cost

How a Policy Works

Three parties are named on a life insurance policy: the insured, the policy owner, and the beneficiary.

  • Owner: The policy owner has complete control and authority over the policy and is responsible for paying premiums.
  • Insured: This person’s life is covered. If they die, the death benefit pays out. Costs are determined by their health and lifestyle.
  • Beneficiary: The beneficiary is the person or entity who receives the death benefit proceeds if the insured dies while the policy is inforce.

What Happens When the Term Ends?

When the term has expired, coverage ends. However, many term policies offer renewal and conversion options to stay insured.

  • Renewing your term policy: The renewal option allows you to extend the same term coverage another year without going through underwriting again. Be aware that renewal rates are much higher than your initial level term rates and increase each year you choose to renew.
  • Converting your term policy: The conversion option lets you change your term coverage into permanent coverage without going through underwriting again. However, converting means you’ll now pay permanent rates much higher than term life insurance.

Who Needs a 15-Year Term Life Insurance Policy?

A term policy that provides coverage for 15 years is an excellent solution in various scenarios:

  • Newlyweds: As you both navigate career progression, plan for retirement, and foster mutual growth, this policy can provide a much-needed safety net.
  • Parents: Raising children is no small feat. They’re entirely dependent for decades. A 15-year policy protects their most formative years.
  • Homeowners: A 15-year mortgage loan is common. With a 15-year term policy, loved ones can remain in your home no matter what happens.
  • Short-term debtors: Some debt dies with you. Other debts are passed on to your loved ones. The death benefit from 15-year term insurance ensures your debts will be settled.
  • Business owners: A 15-year term life insurance policy can provide collateral for lenders if you need an SBA loan with a 15-year term.

Learn more about who needs life insurance

15-Year Term Life Insurance Rates

While the price of life insurance varies for each person, a 15-year term life insurance policy is one of the most budget-friendly options because of the length of coverage.

Term life insurance coverage ranges from 10-40 years. The longer the policy’s term, the higher the premium. Consider the table below. You can see how the term length impacts the monthly rate.

$250,000 Term Policy for a Healthy Non-Smoker Aged 40
Term LengthMonthly Premium
10-Year TermMale: $11.64 | Female: $10.81
15-Year TermMale: $12.94 | Female: $12.53
20-Year TermMale: $17.29 | Female: $14.99
25-Year TermMale: $24.29 | Female: $20.29
30-Year TermMale: $28.01 | Female: $22.71
40-Year TermMale: $60.61 | Female: $48.14

How Rates Are Determined

Life insurance costs are based on various factors, such as:

  • Term length
  • Coverage amount
  • Insured’s age
  • Insured’s gender
  • Insured’s health status

Not all insurance companies assess these risks the same. Some insurers are more lenient with certain factors than others.

Applying to the right insurer can make a big difference in your price.

For example, if you take medication to treat anxiety, one insurer may offer you Standard while another may be willing to offer Preferred Plus. The table below illustrates how the risk class you’re assigned impacts the monthly premium.

Work with a broker, like Quotacy, who can comparison shop across multiple companies to find you the best rate.

$250,000 15-Year Term Policy for a Healthy Non-Smoker Aged 40
Risk ClassMonthly Premium
Preferred PlusMale: $12.94 | Female: $12.53
PreferredMale: $16.92 | Female: $14.97
Standard PlusMale: $21.31 | Female: $19.19
StandardMale: $24.58 | Female: $22.22

Learn more about different life insurance policies and their average monthly costs

See what you’d pay for life insurance

Comparison shop prices on custom coverage amounts from the nation’s top carriers with Quotacy.

How to Get a 15-Year Term Life Insurance Policy

A 15-year term policy provides coverage for a specified period, making it a cost-effective choice for many. Life insurance isn’t a routine purchase, so it’s understandable if you need clarification on how the process works.

You should feel confident in your choice when you buy life insurance. Here is a step-by-step breakdown of what to expect:

  1. Assess your needs: First, understand how much coverage you need. This amount should cover any debts, ongoing expenses, and future needs of your dependents if you pass away. 
  2. Get quotes: Compare quotes from multiple insurance providers with our online life insurance quoting tool. You can get instant real-time pricing without giving away any contact information.
  3. Apply for coverage: After you find a policy you like, take a few minutes to complete the online application. Once submitted, your Quotacy agent reviews your application to double-check that your chosen insurer will offer the best rate.
  4. Undergo a medical exam: Most insurers will require a medical exam as part of the underwriting process. This exam will check your overall health and can affect your insurance rates.
  5. Wait for approval: Once you’ve submitted your application and completed the medical exam, the insurance company will review your application. On average, this process takes 4-6 weeks.
  6. Review and accept the policy: If approved, you’ll receive a policy offer from the insurer. Review the terms carefully. If you’re satisfied, accept it. If you’re dissatisfied, you can walk away or work with your agent to explore alternative options.

Compare 15-Year Term Life Insurance Quotes Through Quotacy

Here at Quotacy, we consider ourselves life insurance matchmakers. Our expertise lies in looking at an applicant’s unique profile and matching them to the insurance company that is most likely to provide them with the most favorable offer.

Getting life insurance to protect your loved ones is a powerful demonstration of your love for them. We’re here to help make the process as easy and smooth as possible.

Start by getting a free and instant term life insurance quote. Applying online takes just a few minutes, and then your agent will take the lead, guiding you through every step of the way.

Note: Life insurance quotes used in this article are accurate as of August 8, 2023. These are only estimates and your life insurance costs may be higher or lower.


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