Term insurance plans offer financial security for the entire family in case of the policyholder’s unfortunate death. Also, you can get optional coverage for critical illnesses or accidental death. You are covered for a long duration, while the premiums are affordable.

Term life insurance can help you bridge that gap relatively cheaply. If you die while the policy is in force, you’ll leave behind a lump sum of cash for whomever you choose. Since term life insurance doesn’t last forever and has no cash value, it’s typically much cheaper than whole life insurance.

If you pass away while your term life insurance policy is in force, your beneficiary will receive the death benefit. No one will receive the death benefit if you do not pass away during the term. And premiums are typically nonrefundable unless you bought a term policy with a “return of premium” option.