What risk does term life insurance primarily protect against?

Term life insurance primarily protects against the risk of premature death. This type of insurance is designed to provide financial security to the policyholder's beneficiaries in the event that the insured individual passes away within the specified term period.

By offering a death benefit that can be used to cover expenses such as mortgage payments, tuition, and daily living costs, term life insurance helps to ensure that loved ones are not financially burdened if the insured were to die unexpectedly. This focus on death risk is what differentiates term life from other types of insurance, which may address different types of risks.

For example, while losing employment, experiencing market fluctuations, or incurring medical emergencies are significant risks that individuals face, they are not the primary concerns addressed by term life insurance. Instead, term life specifically aims to safeguard against the financial consequences of untimely death, making it an essential tool for those looking to protect their family's financial future.