Term life insurance provides you life insurance coverage for a specific amount of time. (Hence the
term term.) If you get a 20-year policy, you’re covered for that 20-year term.
If you die at any point during those 20 years, your beneficiaries (the people you picked to receive the
death benefit of your policy) receive a life insurance payout. For example, if you bought a $300,000
policy for a 20-year term and you die within the next 20 years, your beneficiaries would get $300,000.
Yes, it’s really that simple.