Term life insurance provides coverage for a specific time period. If you have a term life policy and die within the term period, your beneficiaries receive the payout, which is called the death benefit. This can help a family with covering the funeral cost, bills, and other expenses. Term life insurance offers no other value, such as tax-deferred cash accumulation as with whole life or universal life. However, out of all three life insurance options, term life provides the most coverage at a lower cost which is perfect for a young family who has children, a mortgage, or lots of debt that could cause a significant financial burden if the primary wage earner was to unexpectedly pass away.