The term life insurance policies offer coverage for a fixed period of time (term) only. You can pay premiums monthly, quarterly, or annually (almost always the cheapest option).

Term insurance is the simplest and one of the cheapest types of insurance coverage that stays in force for a certain period or age of the insured. The insurance company pays a death benefit if the insured dies within the policy's term but don’t pay if the insured outlives it. Moreover, (as opposed to whole life) whereas it premium cost is low in younger years, it usually rise with the age of the insured. You may opt for a 5 year term, 10 year term, 15 year term, 20 year term, 25 year term or 30 year term. Some term life insurance policies may be kept up until age 65, 80, 90 and 95, but the most companies will not sell term life insurance to an applicant for a term that ends past his or her 80th birthday. The term life insurance has no cash value accumulation or equity and so it is mainly purchased for the security provided by the death benefit.

There are two basic forms of term life coverage: Annually Renewable Term Life and Level Term Life. Premiums are lower for Annually Renewable Term Life Insurance but can rise when you renew your policy. For the Level Term Life Insurance, premiums are initially higher but remain level for a set period of time, generally 10 or 20 years. You can renew your policy if the insured period needs to be extended. The simplest form of term insurance is a one-year contract. This form is the least recognized among all term policies. Most of the term life insurance programs comprise an option to convert the policy to a universal or whole life policy.