Term life insurance guarantees your family a payment if you die within a specific time period.
People often take out life insurance because they want their dependants to be able to cover any outstanding mortgage(s).
Given that the typical mortgage is paid off after 25 years it may not be necessary to extend life cover beyond this.
Equally, policyholders may want to be covered only while their children are living at home or in full-time education.
Limiting the life insurance policy term means that premiums will be lower than with whole-of-life cover.
This type of cover can also be called level-term assurance if the payout would be the same regardless of when the policyholder died during the term.