Term life insurance is a type of life insurance that provides coverage for a specific period of time, typically 10, 20,30, or even 40 years. If the policyholder dies during the term of the policy, the death benefit (the amount the policy pays out) will be paid to the beneficiary.

 

If the policyholder does not die during the term of the policy, the coverage will expire and no death benefit will be paid. Term life insurance is typically less expensive than permanent life insurance, such as whole life or universal life, because it does not build cash value and is only in effect for a limited period of time.