What is term life insurance and do I need it?

Term life insurance is a policy that provides coverage for a specific period, typically 10, 20, or 30 years. If you die during that term, your beneficiaries receive a death benefit payout. If you outlive the term, the coverage simply ends with no payout. It's generally the most affordable type of life insurance. Whether you need it depends on your situation. You likely need it if others depend on your income, such as a spouse, children, or aging parents. It's also worth considering if you have significant debts like a mortgage. If you're single with no dependents and minimal debt, you can probably skip it. A common rule of thumb is to get coverage equal to 10 to 12 times your annual income.