What is term life insurance and who really needs 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 because it has no cash value component. The people who genuinely need it are those with financial dependents who would struggle without their income. This includes parents with young children, spouses where one partner earns significantly more, and anyone with co-signed debts like a mortgage. Single people with no dependents and no significant debt typically don't need it. It's essentially income replacement insurance for people whose death would create financial hardship for others.