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5 Year Term Life Insurance: Quotes From $6/mo




Recognizing the importance of life insurance is the first important step. It's essential to think about how you can protect your family when you're no longer around. While no one really likes to consider the subject of death, it may happen as early as 30s or 40s. And so, it's also not great to think about what your family may have to do without you.

The loss of your income and support could be extremely stressful, and they may be left with expenses such as funeral costs to pay. However, once you have considered the importance of life insurance, the next step is to think about what type of life insurance you need.

There are many different options if you want to ensure you get the right life insurance policy and provider for your needs. You can ensure your policy is tailored to your requirements, no matter how old you are, how many dependents you have, or your reasons for taking out life insurance.

Term life insurance is one of the options you have when you're looking for the right policy. This type of life insurance lasts for a set term and includes 5 year term life insurance. Usually, this is the shortest option: 5 year term life insurance can be renewed or replaced with a 10 year term policy or something that’s longer. Many people consider this type of life insurance to give them flexibility.

About Five Year Term Life Insurance

The two main types of life insurance are term life insurance and whole life insurance. Whole life insurance is a policy that you take out for your whole life, whereas term life insurance only lasts for a certain number of years. For most providers, these terms start at 10 years and might go up to 30 or 40 years. However, a shorter five year term life insurance policy is also possible and can offer some advantages over other options


Level vs. Decreasing Term Life Insurance

Term life insurance is available as either level life insurance or decreasing life insurance. Decreasing life insurance has a decreasing amount of coverage over the life of the policy. This type of life insurance is often required by creditors to cover debts, which is one of the ways a short-term life insurance policy may be useful. If you expect to pay off a debt within 5 years, it makes sense to have a life insurance policy that can pay off that debt if you pass away before then. 

In contrast, a level term life insurance provides the same amount of coverage for the whole policy. This is the type of insurance you will probably want if your main intention is to provide protection for your family and cover expenses such as the loss of your income or funeral expenses. 5 year level term life insurance can often be renewed, so the short term offers you flexibility. 

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When Does it Make Sense to Get 5 Year Term Life Insurance?

It makes the most sense to get a 5 year term life insurance because you can’t afford a whole life insurance policy. Premiums are cheaper because you enjoy a shorter duration of coverage. 

It’s also not a bad idea to get this type of life insurance if you want supplemental coverage. 5 year term life insurance can act as a backup to the life insurance policy provided by your employer. 

Whole life insurance plans require a strict qualification process. And if you’re always rejected because of this, 5 year term life insurance is the reasonable option. It’s because you’re not required to submit a lot of paperwork. 


What are the Pros and Cons of 5 Year Life Term Insurance? 

Taking out 5 year term life insurance can have both benefits and drawbacks. There are some situations when it makes sense, and others when it could be better to look at a longer term or perhaps whole life insurance. 

It could be a good idea to use a 5 year term life insurance policy to cover a debt. With this type of term insurance, you pay for 5 years and then your commitment is finished if you want it to be. So you can save money while ensuring you have protection for a debt that you owe. Or perhaps you want some extra coverage for a short period due to a change in your life, such as starting a new job or hobby that has a lot of risks. 

The one downside of 5-year term life insurance is that it doesn’t mature. This means that you don’t receive any payout in case you outlive the duration of the policy. Whole life insurance policy might be better if you want to receive some money after your coverage expires. 

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5 Year Term Life Insurance Cost 

is that you can often end up paying more for a shorter term. This type of life insurance can be useful for covering things like loans or other types of credit. But a longer term can often be cheaper, so it's important to keep that in mind. 

The length of the policy isn't the only thing that will affect the cost. There are other factors to consider too. Your age and gender can affect how much you pay, and so can your occupation and your lifestyle. Your medical history is also important, and some providers will require you to take a medical exam before they will provide you with life insurance. In particular, you will often need a medical exam if you are older or if you are looking for higher levels of coverage. 

The average 5 year term life insurance cost is $30 per month or $360 per year for a $1,000,000 worth of coverage. This assumes that you're in excellent health and aren’t using nicotine products. The table below shows the cost of $1,000,000 5 year term life insurance from the best companies. 


Cost per MonthCost per YearBest for
Fabric$10.09$121.08Fast online application for 5-year term life insurance
Ethos$14$1685 year term life insurance with money back guarantee
USAA$17$2045 year term life insurance for veteran and active military personnel
Haven$20$2405-year term life insurance with a wide range of coverage amount
AARP$30$3605 year term life insurance for 50-year olds and further
State Farm$56$672Quality & Variety of coverage options
Globe$64$768Flexible 5 year term life insurance

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Best 5 Year Term Life Insurance Companies 

Life Insurance companies that provide 5 year term life insurance quotes are more difficult to find than those that offer longer terms. For most providers, the minimum on offer is a 10 year term. However, there are some 5 year term life insurance companies that you can choose from. 

Here are some of the best 5 year term life insurance companies that we have highlighted for you to help you find the best option to meet your needs.


Fabric 5 Year Term Life Insurance

Pros

  • 130+ years of underwriting life insurance

  • 100% digital term life insurance experience

  • 30 day money-back guarantee

  • No price changes

Cons

  • Coverage can’t be increase once you purchase the policy

Fabric is a partner of Gerber Life Insurance that boasts an all-digital life insurance process. A 5-year term life insurance quote isn’t available online. That said, consider contacting a representative. 

Your 5 year term life insurance from this company is automatically underwritten. This means that you enjoy fast approval or rejection. If approved, you enjoy term insurance pay for 5 years with  $100,000-$5,000,000 worth of coverage. 

The best part is that you can manage your 5 year term life insurance via the Fabric website or app. This makes it easy for you to create a will and set up savings. By the way, in case you want to switch, Fabric grants a refund provided that your policy hasn’t lapsed for more than 30 days. 

Best for: Fast online application for 5-year term life insurance

Average cost: $10.09 per month

Our rating: 10/10


AARP 5 Year Term Life Insurance

Pros

  • Ensures that older individuals enjoy comprehensive life insurance coverage

  • Highly involved

  • Quote online or call

Cons

  • 5 year term life insurance is only available if you become a member

is a nonprofit and nonpartisan organization that functions to secure the financial stability and welfare of Americans ages 50 years or older. This organization’s offices in every US state and US territories serve 38 million members and help sort out problems related to medicare, prescription drug prices, nursing, and caregiving. 

The 5-year term life insurance you get from AARP is provided in partnership with New York Life. This grants a $150,000+ coverage that can be used to pay for funeral expenses, mortgage, rent, and others. AARP can provide an online quote by redirecting you to New York Life’s website. You can also call for further questions before getting covered. 

Best for: 5 year term life insurance for 50-year olds and further

Average cost: $30 per month

Our rating: 10/10


Ethos 5 Year Term Life Insurance

Pros

  • Automatic underwriting

  • Get an estimate of your rates online

  • Works with multiple insurance companies to grant you coverage

Cons

  • Doesn’t allow you to convert your 5-year term life insurance into a permanent life insurance policy 

Ethos works with Legal & General America, Ameritas Life Insurance Corp., and TruStage® to grant fast 5 year term life insurance and other related policies online. Similar to Fabric, Ethos grants coverage within minutes instead of weeks. Ethos earns high ratings from TrustPilot, BBB, and Google Reviews.  This company’s 5-year term life insurance provides $20,000-$2 million coverage depending on your age. 

Best for: 5 year term life insurance with money back guarantee

Average cost:  $14 per month

Our rating: 10/10


USAA 5 Year Term Life Insurance

Pros

  • Specializes in working military personnel

  • Upgrade to permanent life insurance policy with no medical exam

  • Child coverage included

Cons

  • Highly exclusive

USAA specializes in working with active and veteran military personnel. While it only sells 10-30 year term life insurance online, consider contacting an agent since a 5 year option might be available. What makes this company great is that you can choose to upgrade your 5 year term life insurance coverage into a permanent life insurance coverage after one year. 

Best for: 5 year term life insurance for veteran and active military personnel

Average cost: $17 per month

Our rating: 10/10


Haven 5 Year Term Life Insurance 

Pros

  • Offers term life insurance from 5 years to 30 years 

  • Backed by a long-standing insurance company 

  • Easy to apply online 

  • Other financial services available 

Cons

  • No convertible term life insurance option 

  • Low coverage for no-exam policies 

Haven is one of the few life insurance companies that offer a 5 years life insurance plan. They offer their products in all 50 states and their online application can take less than half an hour. Some policies can even take effect on the same day you apply. The parent company is MassMutual, a trusted and well-established large insurance company. 

One of the downsides of this company is that you can't convert your term life insurance to whole life insurance. So if you decide you want whole life insurance later, you'll have to take out a new policy. 

Best for: 5-year life insurance with a wide range of coverage amount

Average cost: $20 per month

Our rating: 9/10


Globe Life 5 Year Term Life Insurance 

Pros

  • Short-term policies available, starting from 1 year 

  • Accidental death and dismemberment rider available 

  • An established company operating for more than 70 years 

Cons

  • Premiums will be more expensive when you renew 

Globe Life, unlike many other companies, focuses on offering short-term policies for their term life insurance. They offer terms of 1, 2, 3, 4, or 5 years, giving you lots of flexibility. Their policies are renewable, although your premiums will go up if you choose to renew. You can add an accidental death rider to your policy too. They also have whole life insurance available. 

Best for: Flexible 5 year term life insurance

Average cost: $64 per month

Our rating: 6/10


State Farm 5 Year Term Life Insurance 

Pros

  • Term life insurance can be converted to whole life insurance 

  • Insurance with no medical exam is available 

  • Wide range of insurance options 

  • Return of premium is available 

Cons

  • No 5 year terms – starts from 10 years 

  • Age and benefit restrictions for no-exam plans 

  • Online quotes not available for all products 

  • Capped final expense policies 

State Farm doesn't offer a 5 year renewable term life insurance product, but it's included in this list because they are one of the top life insurance providers. They offer a range of benefits and their term life insurance policies start at 10 years, so you can still choose a policy with a shorter term. 

The range of products offered by State Farm means that there are several options that don't require a medical exam, although these do have age and benefit restrictions. They offer the option to convert your term insurance to whole life insurance too, which is useful if you change your mind and want to extend your protection. Additionally, you can choose a return of premium option, which allows you to get your money back at the end of the policy. 

Best for: Variety of coverage options

Average cost: $56/mo

Our rating: 9/10


Get Quotes for 5 Year Term Life Insurance 

5 year term life insurance policies have their place and can be useful. To get the best price, compare quotes and find a provider that's right for you. Start by clicking the “Get quotes” button on this page. 


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