Term life insurance is for a specific time period and is the cheapest way to buy life insurance.
Unlike permanent life insurance policies, which cover an individual for their entire life, term life insurance offers protection for a predetermined period, such as 10, 20, or 30 years. Because it does not accumulate cash value and only pays out a death benefit if the insured passes away during the specified term, premiums for term life insurance tend to be lower compared to permanent policies.
The affordability of term life insurance makes it an attractive choice for individuals seeking to secure financial protection for their loved ones during specific critical periods, such as the years when children are growing up or when a mortgage is being paid off.
It's a straightforward and efficient way to provide a death benefit for beneficiaries in case the insured passes away within the chosen term, offering financial security without the long-term commitment and higher premiums associated with permanent life insurance options.