Term life insurance is a type of life insurance that provides coverage for a specific period of time, or “term.” It typically pays out a death benefit to the beneficiary of the policy if the insured person dies during the term of the policy. The premium for term life insurance is generally lower than that of permanent life insurance, such as whole life or universal life, because the coverage is temporary and does not build cash value. However, the policy does not have a cash value, and once the term ends, the coverage typically ends as well, unless the policy is renewed.
