A term life insurance policy is the simplest, purest form of life insurance. You pay a premium for a period of time, typically between 10 and 30 years. A monetary benefit is provided to your family or anybody else you select as a beneficiary if you die during that time.
Term life insurance is often less expensive than permanent whole life insurance, but it has no financial value, no payout when the term expires, and no value other than a death benefit.
A term life policy is, at its most basic level, an arrangement between the person who holds the policy, known as the owner, and an insurance provider. The owner agrees to pay a premium for a set period of time in exchange for the insurance company promising to pay a specific death benefit in cash to a named beneficiary in the event that someone else dies, also referred to as the insured person.
If you are unable to support your family, you should consider purchasing adequate insurance to cover their requirements. There are several methods for calculating how much that is. Whatever level of coverage you choose, it will almost certainly be less expensive than you anticipated.
Learn more about how term life insurance works by watching this video.