What is term life insurance?

Term life insurance is an insurance policy that will protect your loved ones if you die an untimely death. Term life insurance pays out a death benefit if you die while covered under the insurance. For example, if you have a 30-year term policy that offers $500,000 in coverage and you die within 30 years of the purchase date, the $500,000 death benefit will be paid out to your designated beneficiaries. At the end of the 30-year term, you will either have the opportunity to renew the policy, convert it to a whole-life policy, or let coverage lapse.