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Five year term life insurance policies are no longer offered by major insurance carriers. However, if you have an agent who knows a thing or two about life insurance (like us), they can show you how to get a short term life insurance plan at a low cost and with options after 5 years as well.
Read on to have your questions answered, and to learn how to get the best short term life insurance rates overall.
What Was 5 Year Term Life Insurance?
A 5 year term life insurance policy was a plan that covered the insured for 5 years. It was one of the shortest term policies available, after annual renewable term policies.
While shorter life insurance terms typically have cheaper rates, this wasn't the case for a 5 year term. Insurance companies didn't see the underwriting process as worth it for such a short policy, and so charged higher rates to make up for it.
Like most term insurances, the policyholder of a 5 year term would have had the option to convert their policy once it expired. However, it was important to get the help of an experienced life insurance agent when looking at policies, to make sure that your policy included a conversion option.
5 Year Term Life Insurance Alternative Products
So if you're looking for a short term life insurance policy, but don't want to pay overpriced premiums for a 5 year policy, what are your options?
Here are the best alternatives to a 5 year plan:
Annual Renewable Term
An annual renewable term, or ART, is a flexible life insurance plan in which the policyholder can choose to renew their policy after a one-year term, without having to reapply. This type of policy may be cheaper than a 5 year term, depending on the length of time you'll need coverage. If you think your coverage needs may be less than 5 years, then an ART may be a better option for you than a 5 year term.
10 Year Term
Even though a ten-year term covers a longer period of time, it may be cheaper than a 5 year plan would have been. This is because in the eyes of the insurance company, the cost of writing the policy often outweighs the return of investment, and so they would charge a higher premium than they would on a 10-year term. The other reason is every carrier offers a ten-year term and that means there is a lot of competition for your business.
Expert Tip: Short-Term Coverage Strategy
Most people who think they need 5-year coverage actually benefit more from a 10-year term. The longer term often costs less due to carrier competition, and you get rate stability for twice as long.
—Brad Cummins, Insurance Geek Founder
Who This Type of Policy Might Be Right For
Because of their overpriced premiums, we don't recommend a 5 year policy. However, the above-mentioned ART, 10-year term, or other flexible policies could be a good option for someone looking for shorter-term coverage.
Here are some situations in which an ART or otherwise flexible policy might make sense:
To Get Short Term Coverage
These plans are great for anyone in need of short term coverage. The alternative solutions we mention give you plenty of flexibility to cover any short term obligations.
To Insure a Key Employee
This type of insurance policy can temporarily cover the expenses to a business should a key employee pass away prematurely.
To Fund a Buy-Sell Agreement
If a business owner doesn't have the funds to pay for a longer term insurance, they can purchase short-term coverage to insure their business. Once they have the funds, they can potentially convert to a longer-term policy.
Short Term Life Insurance Rates
During the underwriting process, the insurance company will take many factors into consideration. Below are just some of the factors that the underwriter may assess:
- Age
- State
- Gender
- Tobacco Use
- Family History
- Health Condition
- Medication History
- Death Benefit Amount
Learn more about the average cost of life insurance here.
These factors, among others, go into determining your rate class. Depending on the rate class you fall into, your premium can vary greatly. Get in contact with one of our agents today using the quote widget to the right, to see which class you fall into.
Your rate class is the biggest factor when determining the average cost of your life insurance. The below example rate chart demonstrates this, showing the monthly premium costs by rate class for a 40-year-old female with a 20-year term policy and a $250,000 death benefit:
Sample rates generated using our quoting platform across 30+ carriers as of March 2026. Actual premiums vary by health class, state, and carrier underwriting.
| Rate Class | Monthly Premium |
|---|---|
| Preferred Plus | $18 |
| Preferred | $22 |
| Standard Plus | $28 |
| Standard | $35 |
How to Get the Best Short Term Coverage
Just because you can no longer get 5 year term life insurance quotes doesn't mean there aren't options. If you're still looking for a short term life insurance policy, our agents are here to help you find the best carriers and rates for your unique situation.
At Insurance Geek, our specialists can help you find the right short-term coverage for your specific needs. Get your free personalized quote today in just minutes.
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About Brad Cummins
Brad Cummins is the founder of Insurance Geek and primary author of its educational content. Licensed since 2004, he brings over 21 years of experience structuring life insurance and IUL strategies for clients nationwide.
Fact checked by Ryan Wood
Ryan Wood is a licensed insurance professional and contributing advisor at Insurance Geek, serving as a fact checker and technical reviewer for life insurance and annuity content. First licensed in 2013, he brings more than 12 years of experience and holds licenses in over 40 U.S. states.
