What is term life insurance?

Term life insurance is a type of life insurance that provides coverage for a specific period, typically ranging from one to thirty years. During this term, if the insured individual passes away, the policy pays a death benefit to the beneficiaries. This feature makes term life insurance an attractive option for individuals seeking affordable protection for a defined timeframe, such as while raising children or paying off a mortgage.

The focus on a specific coverage period differentiates term life from other types of life insurance, such as whole life or universal life policies, which offer lifetime coverage and often include a cash value component. This characteristic of being limited to a set term means that once the term expires, coverage ceases unless the policyholder renews or converts the policy. This clear focus on a defined duration underlines its purpose as a straightforward financial protection tool, rather than an investment or a lifelong financial product.