What is a Term Life Insurance?
Term life insurance is a type of life insurance policy designed to provide financial protection for a specific period, or “term,” such as 10, 20, or 30 years. During this term, if the insured person passes away, the policy pays a death benefit to the designated beneficiaries. This type of insurance is often chosen for its affordability and simplicity, making it a popular option for individuals looking to secure financial protection for their loved ones during critical years, such as while paying off a mortgage or raising children. Unlike permanent life insurance, term life does not build cash value, focusing solely on providing a death benefit.