Term life insurance is a type of life insurance policy that provides coverage for a specific period of time, typically between one and 30 years. During this time, if the policyholder passes away, the policy will pay out a death benefit to their beneficiaries. However, if the policyholder outlives the term of the policy, the coverage ends and no death benefit is paid out.
Term life insurance is generally more affordable than whole life insurance because it offers temporary coverage rather than lifelong coverage. This makes it a popular choice for people who need a higher level of coverage for a specific period of time, such as while they are raising children or paying off a mortgage.
Unlike whole life insurance, term life insurance does not have a cash value component. This means that the policy does not build up savings over time that can be borrowed against or withdrawn.
Overall, term life insurance is a flexible and affordable option for those who want to provide financial protection for their loved ones during a specific period of time.
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