Term Life Insurance

Life insurance that pays out only if the insured dies within a fixed period, with no cash value.

Term life insurance provides a death benefit only if the insured passes away during a set period, typically 10 to 30 years, and builds no cash value the way permanent life insurance does. Because it doesn't need to fund a lifelong payout or savings component, term life insurance is far cheaper for the same coverage amount.

They bought a 20-year term life insurance policy to cover the mortgage in case either of them died before the kids were grown.