Term life insurance is a form of pure mortality coverage that provides a guaranteed death benefit for a specified period-such as 10, 20, or 30 years-in exchange for level or annually increasing premiums. Unlike permanent life insurance, term policies generally do not build cash value and are designed to expire without value if the insured outlives the term. Many contracts include conversion options that allow the policyowner to exchange some or all of the term coverage for permanent insurance without new medical underwriting, typically within a defined window. Term life is often the most cost-effective way to obtain high face amounts for temporary needs, such as income replacement during working years, mortgage protection, or key-person coverage during a critical business phase.

Advisors recommend term life insurance when clients need large death benefits for a limited time and have tight budgets. They compare level term periods, conversion privileges, and carrier financial strength, and they often use term ladders to match coverage duration to specific obligations like mortgages or education funding. In reviews, advisors revisit whether existing term policies should be converted, replaced, or allowed to lapse as needs and insurability change. Term policies are also used inside buy-sell agreements, executive benefit structures, and family protection plans. Understanding term life insurance helps advisors articulate when low-cost temporary coverage is the right solution and when clients should consider layering in permanent insurance for long-term planning goals.