What Is Term Life Insurance?
Term life insurance covers you for a fixed period — typically 10, 20, or 30 years — and pays a death benefit only if you die during that term. It has no cash value and is usually the cheapest way to buy a large amount of coverage, which is why it is often recommended for parents covering income while children are dependent.
Why it matters
Term is "pure protection." Because it lacks an investment component, more of your premium buys death benefit rather than fees or savings.
Common confusion
Term life expires with no payout if you outlive it; whole life lasts forever and builds cash value but costs much more.
Frequently Asked Questions
Should I buy term or whole life?
For most families, level term for the years dependents rely on your income is the cost-effective choice. Whole life suits specific estate or permanent-need planning.
Can I renew term after it ends?
Many term policies are renewable annually at a much higher rate, but converting to a permanent policy during the conversion window is usually the better option if you still need coverage.