Discover term life insurance benefits, coverage options, and how to choose the right policy term. Get affordable life insurance protection for your family.
Term life insurance provides temporary coverage for a specific period, making it an affordable way to protect your family's financial future during your most vulnerable years.
Term life insurance is straightforward: you pay a monthly or annual premium for a predetermined coverage period. If you pass away during the term, your beneficiaries receive the death benefit.
Different term lengths suit different life stages and financial goals. Here's a breakdown:
5-Year Term
Best for short-term goals or those unsure about long-term commitment
10-Year Term
Suitable for those with young children or recent loans
20-Year Term
Most popular choice; covers children through college
30-Year Term
Provides coverage through retirement; maximum protection
Pro tip: Match your term to when your dependents will become financially independent.
Term life insurance is significantly more affordable than whole life insurance. Here's why most people choose term:
Term Life Insurance
Whole Life Insurance
Term life insurance can cost 70-80% less than whole life for the same coverage amount.
Determine how much coverage you need by assessing your financial obligations:
Components to Include:
Example: KES 3M mortgage + KES 500K debts + KES 1.5M education + KES 300K expenses + KES 5M income = KES 10.3M coverage needed
Protect your future with these policy flexibility options:
Renewable Term
At the end of your term, you can renew for another period without a new medical exam. Premiums increase based on your current age.
Benefit: Maintain coverage even if health worsens
Convertible Term
Convert your term policy to a permanent (whole life) policy without undergoing medical screening. Lock in rates while healthy.
Benefit: Flexible option for lifelong protection later
Term life insurance is essential for anyone with financial dependents:
Scenario 1: Mwangi, 35, Married with 2 Children
Mwangi has a KES 4M mortgage and wants to protect his family. With a 20-year term policy for KES 6M at KES 2,500/month, his family is covered until the mortgage is paid off.
Scenario 2: Amina, 28, Single Earner Supporting Parents
Amina is the sole provider for her parents. A KES 5M 30-year policy costs KES 3,200/month, ensuring her parents' living expenses and medical care are covered if anything happens to her.
Scenario 3: Omondi, 42, Business Owner
Omondi has a 15-year term policy to cover his loan guarantees and provide succession funds for his business. When he passes away unexpectedly, his family avoids losing the business.
| Feature | Term Life | Whole Life |
|---|---|---|
| Coverage Length | Fixed term (5-30 years) | Lifetime |
| Premium | KES 2,000-5,000/month | KES 8,000-20,000+/month |
| Cash Value | None | Builds over time |
| Simplicity | Straightforward | Complex |
| Best For | Budget-conscious families | Wealth accumulation & legacy |
| Death Benefit | If death during term | Guaranteed |
What happens after my term expires?
You can renew for another term, convert to whole life, or let the policy lapse. Some insurers allow renewal without a new medical exam.
Do I get any money back if nothing happens?
No. Term life is pure protection. Unlike whole life, there's no cash value if you don't claim.
Can my premiums increase during the term?
With level term, premiums stay fixed. With renewable term, premiums increase when you renew.
Is term life worth it?
Absolutely. For most families, term life offers the best value: affordable protection at a fraction of whole life costs.
Can I get coverage with health issues?
Yes, but premiums may be higher. Many insurers offer simplified issue or guaranteed issue policies with minimal underwriting.
Get personalized insurance advice and find the perfect coverage for your needs.