Is this how it works?

Trying to make sure I understand the use case for life insurance. It kind of seems a little too good to be true, and makes me feel like there’s a catch somewhere.

40M (earning 130k) with a 39F wife (non-working), and a 2yo.

Currently have a $30k benefit whole life policy with Gerber (from when I was a baby). I pay $13/months in premiums. Is it really just as simple as continuing to pay the premium and the beneficiary gets the $30k whenever I die?

Looking at a term life plan. $1.25mil 20yr, $60/mo. Figuring this to bridge the gap if I die early and can’t finish funding a retirement account for my wife. Theoretically, if I don’t die early, I’ll have saved the necessary money, and this policy will indeed no longer be needed?

This feels like the kind of thing everyone should be getting, but also feels like nobody talks about it.