Term life insurance
Life coverage for a set number of years; typically no cash value.
Plain definition
Term life insurance provides a death benefit if the insured dies during a stated term—10, 20, or 30 years, for example—in exchange for level or stepped premiums. If the term ends and you do not renew or convert, coverage stops unless you buy new insurance, often at higher age-based rates.
Why it matters
Term is a common way to cover income replacement and debts for a defined season—mortgage years or while children are dependent—without paying for permanent cash value you may not need.
Example
You buy $500,000 of 20-year term at age 35. If you die in year 12, beneficiaries receive the face amount minus any loans or policy conditions; if you outlive year 20, the term ends unless you convert.
Common misunderstanding
Cheap term quotes online are illustrations until underwriting approves your class. Health and hobbies change eligibility and price.
Policy language always controls. This is educational content, not advice. See our disclaimer.