Term life insurance offers temporary coverage for a specified term, such as 10, 20, or 30 years. It’s often chosen for its
affordability, making it an excellent choice for young families. For example, a 30-year-old individual may opt for a 20-
year term policy with a $500,000 death benefit. If they pass away during the policy term, their beneficiaries receive the
$500,000, providing financial support for their family’s immediate needs, like mortgage payments, education costs, or
daily expenses.
Term Life Insurance: Who Benefits from It?
Term life insurance is a type of life insurance with a predefined duration, offering financial security for a specific period.
It is often favored by individuals who have a responsibility to provide for their dependents until they become financially
independent. For example, a parent with two young children may opt for term life insurance, setting it to last until the
youngest child reaches adulthood at 21. Term insurance is known for its affordability and flexibility, making it a popular
choice for many. Some policy options allow for a return of the full premium if the policyholder outlives the term,
although they do not serve as an emergency fund (unlike other insurance types).
