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Term life insurance provides coverage for a specific period, paying a death benefit if the insured person dies within that term.
In Depth
Term life insurance is a type of life insurance that offers coverage for a set number of years. It's often chosen for its affordability compared to permanent life insurance. The policy pays out a death benefit only if the insured person dies within the specified term. Once the term ends, coverage typically expires unless renewed, often at a higher premium.
Example
John bought a 20-year term life insurance policy to ensure his family would be financially protected if he died while his children were still young.