Term life insurance is a type of life insurance that provides coverage for a specific period, or 'term,' such as 10, 20, or 30 years. If the insured person dies during the term, the policy pays a death benefit to the beneficiaries. However, if the insured survives the term, the policy expires, and no payout is made. Term life insurance is often chosen because of its affordability compared to permanent life insurance policies.

One of the main advantages of term life insurance is its low cost, making it a popular choice for young families and individuals seeking substantial coverage at an affordable rate. However, it does not build cash value like whole life insurance. Once the term ends, the policyholder must either renew at a higher premium or let the policy lapse. Many opt for term life insurance as a way to ensure that, in the event of their death, their family will have financial protection.