American term life insurance is a type of life insurance policy intended to secure a beneficiary's finances if the policyholder dies within the term's length. Coverage typically lasts for 1–30 years.
A term life insurance policy requires the policyholder to pay a premium to the insurer for a certain duration. In the event of the policyholder's death within this term, the insurance company provides the designated beneficiaries with a death benefit. If the policyholder survives the term, the policy is rendered void, thus forfeiting the benefit.
Term life insurance provides economical protection to families with short-term financial needs. It does not have an accumulative cash value and can be an ideal choice for those seeking to protect their children or cover mortgage payments over a set period of time.
