What is the main benefit of a term life insurance policy?

The main benefit of a term life insurance policy is that it is often less expensive than permanent insurance. Term life insurance provides coverage for a specified period, typically ranging from 5 to 30 years. Because it does not build cash value and is designed purely for death benefit protection, the premiums are significantly lower compared to permanent types of insurance, such as whole life or universal life, which include an investment component.

This cost-effectiveness makes term life insurance an attractive option for individuals who want to secure a death benefit for their beneficiaries at an affordable rate, especially during significant life stages when financial commitments (like raising children, paying a mortgage, etc.) are higher. Thus, it serves as a practical solution for many people while aligning with their budgetary constraints and financial planning goals.