5-Year Term Life Insurance
Over 100 Carriers to Quote From. Here are a few of them!
***5-Year Term Life Insurance is not offered by the majority of insurance carriers. There are options for it, but it is recommended to use our Quote Request Form below, as it requires a specialized contract (which we have) with specialized insurance carriers. You can use the Life Insurance Calculator below to see some alternative options***
5-Year Term Life Insurance was once available as a short-term protection option, but today it’s rare and often more expensive than longer-term policies. Instead, many insurers recommend 10-year term or annual renewable term (ART) policies for better value and flexibility. At Diversified Insurance Brokers, we help you evaluate the smartest short-term alternatives that provide strong protection without unnecessary premium costs.
Explore Affordable Term Life Options
Since 5-year term policies are uncommon and overpriced, it’s smarter to compare value in 10-year term insurance.
Why You Rarely See 5-Year Term Policies
- Most carriers no longer offer them because underwriting costs outweigh the short-term benefit.
- Compared to longer terms, 5-year policies often have higher monthly premiums for the same benefit amount.
- Annual Renewable Term (ART) or 10-Year Term options usually provide better pricing and more flexibility.
Best Alternatives to 5-Year Term
- Annual Renewable Term (ART): Short-term coverage you can renew each year without new medical exams.
- 10-Year Term: Often more affordable than 5-year, with level premiums and broader availability. Learn more on our 10-Year Term Life Insurance page.
Compare Real-Time Term Life Quotes
See live comparisons between short-term and longer-term policies to find the most affordable coverage.
Life Insurance Quoter
Comparison: ART vs 10-Year Term vs Permanent
| Feature | Annual Renewable Term (ART) | 10-Year Term | Permanent Life |
|---|---|---|---|
| Length | 1 year, renewable | 10 years | Lifelong |
| Cost | Moderate, increases yearly | Lower and stable | Highest |
| Best For | Very short-term needs | Reliable short-term coverage | Lifetime protection with cash value |
Case Example
Someone seeking coverage only until the end of a short work contract initially considered 5-year term. After reviewing options, a 10-year term policy provided the same level of protection at a lower cost, with more carriers to choose from and the added flexibility of conversion features.
Why Work With Diversified Insurance Brokers?
Since 1980, our team has helped clients secure efficient, cost-effective term life coverage. If you’re considering very short-term insurance like 5 years, we’ll help you compare smarter alternatives such as ART and 10-Year Term policies. Learn more about our life insurance services, explore burial insurance, and see why clients trust us.
Request a Life Insurance Quote
Get personalized life insurance options from 100+ carriers—compare rates, riders, and coverage lengths side by side.
Prefer to talk? Call 800-533-5969
Need Short-Term Coverage? We Can Help
Book your free consultation today and explore the most cost-effective short-term life insurance options tailored to your needs.
FAQs: 5-Year Term Life Insurance
What is a 5-year term life policy?
A 5-year term policy provides a fixed death benefit and level premiums for five years. If the insured dies during the term, beneficiaries receive the payout; if the term ends first, coverage expires unless renewed or converted.
Who is 5-year term life best for?
People needing short-window protection—bridging a gap before employer coverage starts, covering a small business or personal loan, or protecting dependents during a near-term milestone.
How does cost compare with 10- or 20-year term?
All else equal, 5-year term is usually cheaper than longer terms because the insurer’s risk period is shorter. If you expect to need coverage longer than five years, locking in a longer term can avoid higher future premiums.
Can I renew after five years?
Many policies allow annual or multi-year renewal, typically at higher age-based premiums. If you know you’ll need coverage beyond five years, compare renewal costs versus buying a longer level term now.
Can I convert 5-year term to permanent life?
Most modern term policies include a conversion option for a limited window, letting you switch to a permanent policy without a new medical exam. Check the conversion deadline and eligible products.
Are no-exam options available for 5-year term?
Yes, some carriers offer accelerated or no-exam underwriting at certain face amounts and ages. Quick decisions are common, though pricing and maximum coverage can differ from fully underwritten policies.
What riders can I add to a 5-year term policy?
Common riders include accelerated death benefit, waiver of premium, child term riders, and accidental death. Availability and costs vary; add only riders that fit your goals and budget.
Is 5-year term good for business needs?
Yes—owners often match coverage to a short-term loan, key-person risk during a transition, or a buy-sell bridge until a longer plan is in place.
Can I ladder multiple term policies?
Absolutely. You can stack a 5-year term with longer terms to align coverage amounts with changing needs, potentially lowering total cost over time.
What if I cancel before the 5 years are up?
You can typically cancel at any time. Pure term policies don’t build cash value, so there’s no refund of premiums already paid unless specified otherwise in the contract.
