Term life insurance is pretty simple—it’s a policy that covers you for a set period of time, like 10, 20, or 30 years. If something happens to you during that time, your family or beneficiaries will get a payout (called a death benefit). It’s a straightforward and affordable way to make sure your loved ones are financially protected.

When you buy a term life insurance policy, you pay a regular premium (monthly or yearly) for the length of the term. If you pass away during that time, the insurance company pays the death benefit to your beneficiaries. If the term ends and you’re still around, the policy usually just expires unless you decide to renew or convert it.

The main draw is affordability. Term life insurance gives you a lot of coverage for less money compared to permanent life insurance. Plus, it’s flexible—you can choose a term that fits your needs, like covering the years your kids are in school or until your mortgage is paid off.

When your policy term ends, you have a few options: you can let it expire, renew it (though the price might go up), or convert it to a permanent policy. It’s all about what makes sense for your situation at that time.

This depends on your personal situation—think about things like how much debt you have, your mortgage, or your kids’ college costs. A good rule of thumb is to aim for coverage that’s 5-10 times your annual income, but it’s always smart to talk to a financial advisor to figure out what’s best for you.