Term life insurance covers you for a set period — usually 10, 20, or 30 years — and pays a death benefit to your beneficiaries if you die during that term. The premium is fixed for the term, there's no cash value, and the policy simply ends when the term expires. It's the lowest-cost way to get a large death benefit during the years people depend on your income.
A level-term policy locks in a fixed premium and a fixed death benefit for the chosen term. If you die during the term, your beneficiaries receive the benefit income-tax-free; if you outlive it, coverage ends with no payout and no cash value. Because it's pure protection with a defined end date, term life costs far less than permanent insurance for the same death benefit. Term vs. permanent (whole/universal) life: permanent policies last your whole life and build a cash-value component, but cost several times more per dollar of coverage. Term covers a temporary need; permanent covers a lifelong one. Most people buying coverage to replace income during their working and mortgage-paying years use term. Who it fits: anyone whose death would leave dependents, a mortgage, or other obligations under-funded — the classic case is replacing income while children are growing or a mortgage is being paid down. The term is typically matched to how long that need lasts. What to compare: the coverage amount (a common rule of thumb is several times annual income, but needs vary), the term length, the issuing carrier's financial strength (AM Best, Moody's, and S&P ratings indicate the insurer's ability to pay claims), whether a no-medical-exam option is available, and conversion or renewal riders. The NAIC's life-insurance buyer resources (https://content.naic.org/consumer/life-insurance.htm) and the CFPB (https://www.consumerfinance.gov/) explain how to evaluate policies and carriers. State insurance departments, coordinated through the NAIC (https://www.naic.org/), regulate carriers and license agents.
Term covers a set period (10–30 years) with no cash value and a low premium; whole life is permanent, builds cash value, and costs several times more for the same death benefit. Term suits a temporary need (income replacement, a mortgage); whole life suits a lifelong need.
Coverage simply expires — no payout and no refund of premiums on a standard level-term policy. Many policies offer renewal (at a much higher age-based rate) or conversion to a permanent policy without a new medical exam; check those riders before buying.
It depends on the obligations your income covers — a common starting point is several times your annual income plus any mortgage and future costs (e.g. education) your dependents would face. This is general education, not a recommendation; a licensed agent or the NAIC's worksheets can help you size it.