Term life insurance
What Term life insurance means
Term life insurance covers you for a fixed period — the term — such as 25 years. If you die during the term, the policy pays the agreed lump sum to your beneficiaries. If you outlive the term, the cover simply ends and there is no payout or cash value. Because it only covers a set period, it is usually the most affordable way to protect a mortgage or young family. The main shapes are level, decreasing and increasing term.