Term Life Insurance
Term life insurance covers the insured for a specific period of time. The term is decided upon at the time the policy is purchased and varies depending on the needs of the individual. Term life policies do not accrue cash value, only guarantee coverage if the insured dies during the time insured. These policies tend to be quite inexpensive because the premiums are assessed based upon the likelihood of the insured dying while covered. Generally if the risk that the insured may die within the specified term is high, insurers are less likely to offer a policy to them. The downside to term life insurance is that if the policyholder does not die while under coverage, they do not receive any benefits or refund, and the policy simply ends.
Term life insurance is also available for mortgage coverage as well. In the event that the insured passes while under coverage, their mortgage will be paid off so that their beneficiaries need not cover the difference between what has been paid and what the bank still owns.