Life insurance providing coverage for a specific period; pays out only if you die.
Term life insurance provides death benefit protection for a specific period (10, 20, 30 years, etc.). If you die during the term, beneficiaries receive the death benefit; if you survive the term, coverage ends. Term insurance is pure protection with no cash value or investment component—it's significantly cheaper than whole life insurance. For example, a 35-year-old in good health might pay $30–50 monthly for $500,000 in 30-year term coverage. Term insurance is appropriate for people with dependents, debts, or income replacement needs. Common uses: covering mortgages, childcare until children are independent, or income replacement. Term policies are convertible—at term end, you can convert to permanent coverage without re-qualifying medically, though at higher cost.