Term life insurance policies offer insurance protection for a specified term or period of time - typically, one, five, 10, 15, 20 or 30 years, or until a specific age (such as 65). Premiums are guaranteed to remain level for a set period (level term), and the insurance is generally less expensive than permanent (cash value) life insurance.

At the end of the term period the policy may be renewed without a medical exam, although the premium rate will be higher because of your older attained age. Some term life insurance policies include the option to convert to a permanent insurance policy.

Term life insurance is typically purchased by individuals who need a large amount of insurance coverage for a temporary period of time (mortgage protection, family income protection, etc.) - or who need a more life insurance at the lowest possible cost.

Since traditional term life insurance provides a death benefit only, the policies do not offer an opportunity to build cash values. However, a new product concept known as "return of premium term" provides a return at the end of the level-premium period in the amount of the cumulative premiums paid - an alternative to traditional term life and permanent insurance products.
 

Return-Of-Premium Term

Traditional Term