Term Life Insurance

Insurance

Term life insurance provides death benefit coverage for a specific period (10, 20, or 30 years) at fixed premiums. If you die during the term, your beneficiaries receive the face amount tax-free; if you outlive the term, coverage ends with no payout. Term is dramatically cheaper than permanent life insurance — a healthy 30-year-old non-smoker can get $1M of 20-year term for $30-$50/month. Use term to cover income replacement needs during peak earning and dependency years (kids, mortgage). Most people don't need life insurance once kids are independent and the mortgage is paid. Buy term, invest the difference is the classic financial advice.