Term life insurance lasts for a set number of years before it expires. If you die before the term is up, a set amount of money, known as the death benefit, is paid to your designated beneficiary.
Term life is considered the simplest, most accessible insurance policy. When you make your payments (known as your premium), you’re paying for the death benefit that goes to your beneficiaries in the event of your death. The death benefit can be paid out as a lump sum, a monthly payment, or an annuity. Most people elect to receive their death benefit as a lump sum
Term life insurance policies are more affordable than other types of life insurance policies, usually costing $30-40 a month for a 30-year, $500,000 policy for healthy people in their 20s and 30s. The policy expires at the end of the term, which can last up to 30 years.