Term life insurance offers coverage for a specific duration, typically ranging from 10 to 30 years, although some policies may offer flexibility in terms. It provides a payout to beneficiaries only if the policyholder passes away within the policy’s active period and has consistently paid premiums.

If the policyholder survives the term, the policy concludes without a payout. Some term life policies may allow conversion to a whole life policy or offer renewal options at the term’s end.

In contrast to permanent life insurance, term policies do not accumulate cash value. As a result, they tend to have more affordable rates compared to certain permanent life insurance options, which carry higher premiums due to cash value accumulation and a longer coverage period.

The timing of your term life insurance purchase and your current health status can significantly impact premium affordability. Typically, purchasing a policy earlier and maintaining good health can lead to more budget-friendly premiums.