Term life insurance is a policy that provides coverage for a specific term or time period, typically ranging from 10 to 30 years. Beneficiaries receive a death benefit if the policyholder passes away during the term. However, if the policyholder outlives the term, the coverage ends unless the policy is renewed or converted into a whole life insurance policy.

A term life insurance policy is often chosen for its affordability and is particularly suitable for individuals seeking coverage for specific financial responsibilities like a mortgage, educational expenses, or a limited-time financial obligation.

General Characteristics of Term Life Insurance Policies

Coverage Duration: Defined period typically ranging from 10 to 30 years.
Cost: Generally lower premiums compared to whole life insurance policies.
Purpose: Suited for temporary coverage needs and specific financial obligations.
Flexibility: Options to renew or convert at the end of the term.