Term life insurance is the simplest and most affordable type of life insurance, making it a popular choice for many. It provides coverage for a set period—typically 10, 20, or 30 years—and pays a death benefit to beneficiaries if the policyholder dies within that term. If the term ends and the policyholder is still alive, the coverage expires unless renewed or converted.

The appeal of term life lies in its clarity and cost-effectiveness. Premiums are generally lower than those for permanent policies because it’s temporary and doesn’t build cash value. For instance, a healthy 30-year-old might pay just $20–$30 a month for a $500,000 policy over 20 years. This makes it a practical option for young families or individuals with specific financial obligations, like a mortgage or child-rearing years.

Choosing the right term length is key. A 20-year term might suit someone with a 20-year mortgage or kids who’ll be independent in two decades. If the policyholder outlives the term, they can reassess their needs—perhaps opting for a new policy or relying on savings instead.

One limitation is that term life offers no long-term value if the policy expires unused. However, some policies allow conversion to permanent insurance before the term ends, providing flexibility. It’s a trade-off: lower cost for focused protection versus the lifelong benefits of permanent plans. For many, term life’s simplicity and affordability make it an essential tool for safeguarding loved ones during life’s most vulnerable stages.