What is term life insurance and who needs it?

Term life insurance is a policy that provides coverage for a specific period, typically 10, 20, or 30 years. If the insured person dies during that term, the policy pays a tax-free death benefit to the beneficiaries. If the term expires and the person is still alive, the coverage ends with no payout. It's generally the most affordable type of life insurance. It's best suited for people who have financial dependents or obligations tied to a specific timeframe. This includes parents with young children, homeowners with a mortgage, breadwinners whose spouse relies on their income, or anyone with significant debt. Essentially, if someone else would face financial hardship from your death, term life insurance is worth considering.