What does 'term life insurance' provide coverage for?

Term life insurance is designed to provide coverage for a specified period, which typically ranges from one to thirty years. This means that if the insured individual passes away within that designated term, the beneficiaries will receive the death benefit. If the individual survives beyond the term, the coverage expires without any payout.

This type of insurance is particularly appealing for those who want affordable premiums and have specific financial responsibilities, such as paying off a mortgage or funding children’s education, that might disappear after a certain time. Unlike whole life insurance, which covers the insured for their entire lifetime and accumulates cash value, term life insurance is straightforward and caters to temporary needs, making it a practical choice for many individuals looking for short-term financial protection.