What is term life insurance?

Term life insurance is life insurance that provides coverage at a fixed price for a specific period of time. As such, it is often less expensive than permanent life insurance products that typically cover you for the entirety of your life.

What is life insurance?

Life insurance is a contract that provides your loved ones with a lump-sum, tax-free payment, known as a death benefit, after you pass away. In exchange for your regular premium payments, it acts as a financial safety net to help your family cover expenses like mortgage payments, college tuition, or daily living costs.

What is whole life insurance?

Whole life insurance is a type of permanent life insurance that provides coverage for your entire life and also builds a cash value that you can borrow against. Unlike term life insurance, which only covers you for a specific period, a whole life policy doesn't expire and its premiums typically remain the same

Is life insurance taxable?

No, the death benefit from a life insurance policy is paid out to your beneficiaries almost always 100% income-tax-free. This is one of the most significant advantages of life insurance, as it allows you to pass on money to your loved ones without creating a tax burden for them.

How does life insurance work?

Life insurance works in a few simple steps: you purchase a policy and pay regular premiums to keep it active. If you pass away while the policy is in force, the insurance company pays the predetermined death benefit to the person (or people) you named as your beneficiary. They can then use that money for any purpose.

How much is life insurance?

The cost of life insurance varies widely but can be surprisingly affordable, especially for young, healthy individuals. Your specific premium is based on factors like your age, health, lifestyle (e.g., smoking), and the type and amount of coverage you choose. A healthy 30 year old man may be able to find a $500K policy for a 10-year term for less than $30 a month.

What does life insurance cover?

Life insurance provides a cash payout that your beneficiaries can use for any financial need without restriction. Commonly, life insurance covers everything from immediate expenses like funeral costs to long-term needs like replacing lost income, paying off a mortgage, funding college education, or simply providing a financial cushion during a difficult time.

How much life insurance do I need?

Life insurance needs vary from person to person. Calculate your needs by using this life insurance calculator .

At what age should you buy life insurance?

The best time to buy life insurance is generally as early as possible, since premiums are lowest when you're young and in good health. That said, major life milestones - like getting married, having children, or taking on a mortgage - are the most common triggers that make coverage a priority. The longer you wait, the more you're likely to pay for the same amount of coverage.

Does life insurance require a medical exam?

Not always. Some term life insurance policies use accelerated underwriting, which means you can get approved based on your health history and data alone - no exam required. Others may ask for a basic medical exam to verify your health before issuing a policy. The type of policy you apply for and the amount of coverage you need will typically determine whether an exam is part of the process.

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SoFi Insurance Agency, LLC ("SoFi Agency"), doing business in the state of California as Social Finance Insurance Agency, is a licensed independent insurance agency and affiliate of SoFi Technologies, Inc. and SoFi Bank, N.A. SoFi Agency is compensated via commission or referral fee by its insurance carriers and other related service providers. Not all carriers or options in the marketplace are shown. SoFi Agency and its affiliates do not guarantee the services of any insurance carriers or other related service providers. California Entity License Number: 0L13077, Resident License No. 762363. See all licenses.

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All insurance products shown on SoFi are underwritten and provided by licensed insurance carriers, not SoFi Agency. SoFi Agency does not underwrite or price insurance policies. Insurance products presented may not be available in all states, and your rates and savings will vary based on individual factors. The rates or savings advertised are not necessarily available from all providers or advertisers. Not all carriers or options in the marketplace are shown.

¹Issuance of the policy will depend upon answers to health questions set forth in the application and third-party data. While medical exams may not be required for coverage up to $1M, certain health information is required as part of the application to determine eligibility for coverage.

²Prices start at $19/month based on a 30-year-old female rated Preferred non-tobacco for a $500K policy for a 10-year term. Individual rates will vary as specific circumstances will aﬀect each customer’s rate. Rate valid as of 07/08/2026. 

³This SoFi member benefit is provided by Trust & Will, not by SoFi or its aﬃliates. SoFi may be compensated by the benefit provider. Oﬀers are subject to change and may have restrictions, please review the benefit provider’s terms: Trust & Will Terms of Service 

⁴20% off Trust & Will: This SoFi member benefit is provided by Trust & Will, not by SoFi or its affiliates. SoFi may be compensated by the benefit provider. Offers are subject to change and may have restrictions, please review the benefit provider’s terms: Trust & Will Terms of Service.  Trust & Will is offering a limited time 20% discount on the initial purchase of estate plans specifically for SoFi members. No promo code required; the 20% discount is automatically applied at checkout to the initial purchase if a Will or Trust-based estate plan. Subsequent upgrades aren’t eligible for discount. The promotion may be terminated or changed at any time without notice.

SoFi doesn’t provide tax or legal advice. Consult with a qualified tax advisor or attorney about your specific needs.

This content is provided for informational and educational purposes only and should not be construed as financial advice.

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