Definition
A pure death benefit covering a fixed period, priced cheaply while young and healthy. The standard sizing is roughly 10-12 times income if anyone depends on your paycheck; without dependents you likely need none.
Why it matters
Term life is the cheap, boring product that actually protects families, in contrast to investment-flavored policies that mostly protect commissions. Buy the coverage, invest the difference.
Example
A healthy 32-year-old parent buys a 20-year, $500,000 term policy for roughly $25-35 a month, sized to replace income until the kids are grown. A whole-life policy with the same benefit would cost many times more.
Related terms
This definition is educational, not financial, legal, or tax advice. U.S. rules and limits change; verify time-sensitive details with official sources. See our disclaimer.