Term life insurance is meant to be easy to understand. It has a clear and straightforward value proposition: you pay for coverage that will help your family if you die during the term of your policy. Terms can be for 10, 15, 20, 25, or 30 years. Term life insurance is great because it gives you a single product that does one thing very well. It also gives you a lot of peace of mind when you need to protect your people the most.
Term life insurance is often 3–10 times less expensive than other types of life insurance, like whole life. This is because you only pay for the time you use it. You don't have to worry about price increases because the monthly premiums are set.
Your beneficiaries will only get the money if you die before the term is up. If you die after the term is over, your beneficiaries won't get any money. If you want to learn more, check out our article on term life insurance payouts.
Over time, many people may need less life insurance because their children will grow up and be able to support themselves, their mortgages will be paid off, they will be able to retire on their savings, etc. So, if someone only wants coverage for a certain amount of time, term life may be a better deal.
After the original term is over, you can renew policies for a certain amount of time. When you renew the term, you're guaranteed to be able to get insurance, but you usually have to pay more each month.