23-Year Term Life Insurance is a strategic coverage option for people whose financial responsibilities extend slightly beyond a standard 20-year planning horizon but don’t require the cost of a longer 25- or 30-year policy. While not as commonly discussed as traditional term lengths, a 23-year term can be an efficient solution when your mortgage payoff, income replacement needs, or retirement timeline don’t align with round numbers. At Diversified Insurance Brokers, we help clients compare 23-year coverage against nearby term options to determine whether it truly delivers value—or whether a different structure makes more sense.

How 23-Year Term Life Insurance Works

A 23-year term life insurance policy provides level premiums and a fixed death benefit for exactly 23 years. If the insured passes away during the term, the policy pays the death benefit to the named beneficiaries—most often income-tax-free. If the policyholder outlives the term, coverage typically expires unless the policy is renewed annually or converted to permanent insurance, depending on the carrier’s provisions.

Like all term life insurance, a 23-year policy is designed purely for protection. There is usually no cash value component, which helps keep premiums lower than permanent life insurance options. What differentiates this term length is not how the policy functions, but how precisely it can align with a real-world financial timeline.

Why Someone Might Choose a 23-Year Term Instead of a Standard Length

Most people shop for term life insurance by defaulting to common durations like 20 or 30 years. While these options are widely available and easy to compare, they don’t always match how financial obligations actually unfold. A 23-year term can be appropriate when a “few extra years” closes the gap between a standard term and your true risk window.

Common examples include a refinance schedule that leaves an odd payoff timeline, a retirement plan that extends just beyond the 20-year mark, or a family plan where the final dependency years matter as much as the early ones. Those last few years can be when you still have a mortgage, still have kids in the home, and still have retirement contributions that haven’t reached the point where they can replace income risk on their own.

Where 23 Years Fits Best

A 23-year term can make sense when your financial plan has a defined “risk end date” that falls somewhere between standard choices. For example, you may want protection that lasts through a specific mortgage payoff year, through the end of a business loan, or until your projected retirement income and savings reach a level where the household can withstand the loss of an income without a major lifestyle disruption.

It can also fit families who want to keep coverage in place through the full stretch of child dependency—including the high-cost late teen and college transition years—without extending coverage much farther than the point where those expenses naturally taper off.

23-Year Term vs. Shorter Coverage

The biggest risk with choosing a term that is slightly too short is not the premium—it’s what happens at the end of the policy if you still need coverage. If you’re forced to reapply later, you may be older, health may have changed, and your choices may be narrower. Even if you qualify, the new premium can be meaningfully higher, which can pressure families into buying less coverage than they really want.

That’s why a 23-year term can be attractive: it’s often chosen specifically to avoid that “coverage cliff” at year 20 when obligations are still real, but you’re close enough to the finish line that you don’t want to lock in a much longer term.

23-Year Term vs. Longer Policies

On the other side, buyers often compare a 23-year term to a longer policy and ask a simple question: “Do I actually need protection that far out?” If your biggest obligation ends around year 22 or 23, then paying for extra years can mean buying coverage after the point where your risks have already declined.

Longer terms can still be the right move when your timeline is uncertain, when you want maximum flexibility, or when the price difference is small enough that the added duration feels worth it. But if your plan is clear—and your risk truly drops after 23 years—a custom-length policy may be a better alignment on principle.

What Determines the Cost of a 23-Year Term Life Policy

Pricing for 23-year term life insurance is driven by the same underwriting factors that apply to all term policies, but the health class you qualify for usually matters more than the difference between nearby term lengths. Carriers evaluate age, overall health, medications, tobacco or nicotine use, build (height and weight), family medical history, driving record, and the amount of coverage requested.

Because guidelines vary between insurers, two carriers can view the exact same profile very differently. That’s especially true when there are controlled conditions, prescriptions that trigger follow-up questions, or borderline build and blood pressure readings. This is one reason an independent broker comparison often produces better outcomes than choosing the first “best rate” you see online.

Medical Exams vs. No-Exam Underwriting

Some applicants qualify for accelerated or no-exam underwriting. These programs can be convenient and fast, and for many healthy people they deliver excellent pricing. In other cases, a traditional medical exam can be the better path—especially for larger face amounts or when you believe your current health profile will outperform what data sources might suggest.

The best approach is usually not “always no-exam” or “always exam.” It’s choosing the underwriting path that is most likely to deliver a strong rate class and a clean approval for your specific profile. That’s exactly what we help clients evaluate before an application is submitted.

How Much Coverage Makes Sense for a 23-Year Term?

The right coverage amount depends on what needs to be protected during the next 23 years. Most people start with income replacement and debt payoff, then layer in costs that keep a household stable—childcare, ongoing household services, education planning, and a buffer for the surviving spouse to avoid making rushed decisions.

From there, subtract resources that would realistically be used, such as savings, other life insurance, and any survivor income expected to continue. The goal isn’t to “win” by buying the biggest policy. The goal is to buy the right amount and keep it in force for the full term.

Conversion Options and Long-Term Flexibility

Many term life insurance policies include a conversion option that allows you to exchange your term policy for permanent coverage without new medical underwriting, provided conversion occurs within the allowed window. This can matter if health changes later or if your planning goals shift and you want coverage that lasts beyond the original term.

If conversion is important to you, the details matter. Carriers vary on how long the conversion window lasts and which permanent products are eligible. Part of a proper comparison is confirming those rules upfront, not discovering them when time is running out.

What Happens When a 23-Year Term Ends?

As the end of the term approaches, most policies allow one or more of the following: letting coverage expire, renewing annually at higher rates (if offered), or converting to permanent coverage (if eligible). Annual renewal rates are typically designed as a short-term bridge, not a long-term solution, because the premium can increase sharply as age increases.

A good rule of thumb is to start reviewing your plan within the last 24 months of the term if you think you may need coverage longer. That leaves time to compare options without rushing and to protect flexibility if health has changed.

Case Example: Why 23 Years Was the Right Choice

A 41-year-old professional refinanced a mortgage and wanted coverage that lasted through the payoff schedule while also extending into early retirement planning. A 23-year term aligned closely with that timeline, keeping protection in force through the highest-risk years without paying for unnecessary extra years beyond the plan.

By matching duration to the real obligations, the client reduced the chance of a coverage gap at the wrong time and avoided paying for a much longer term that extended beyond the true need.

Why Work With Diversified Insurance Brokers?

Since 1980, Diversified Insurance Brokers has helped families and professionals design life insurance strategies that reflect real financial timelines—not generic defaults. With access to 75+ carriers, we compare underwriting guidelines, pricing structures, and conversion rules to find the best fit for your situation.

To explore your options, visit our life insurance services page or request a personalized quote review using the form above.