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Term Life Insurance

Life insurance that covers you for a set number of years, then expires.

What it actually means

Term life insurance provides a death benefit only during a fixed period — commonly 10, 20, or 30 years — and is significantly cheaper than permanent life insurance because it builds no cash value. Most people buying life insurance for income replacement or debt protection use term.

Example: A healthy 30-year-old might get a 20-year, $500,000 term policy for around $25–$30 a month.

See it in context

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Related terms

Whole Life InsuranceDeath BenefitPremium

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