phrase
term life
In plain English
Life insurance that pays a death benefit only if you die during a fixed period (10, 20, 30 years) — no cash value, just protection.
The cheapest way to get a meaningful death benefit. A 35-year-old in good health can get $1M of 20-year term for $30-50/month. Doesn't build cash value, doesn't return premium — pure protection.
What it covers
A death benefit paid to beneficiaries if the insured dies during the term. Premiums are typically level for the term, then increase sharply (or end) at expiration.
What it does not cover
It does NOT build cash value or pay anything if you outlive the term (unless you've added a return-of-premium rider). The insurance just ends.
Where it trips people up
20-year term issued at 35 ends at 55. If you still need coverage at 55, the new policy is much more expensive. Match the term length to actual liability decay (mortgage payoff, kids out of college).
The technical version
A type of life insurance providing coverage for a specified period (the term), paying a death benefit only if the insured dies during that period; no cash value accumulation.