Term Life Insurance
Term Insurance contracts provide coverage for a fixed period. The term can range from 5, 10 or 20 years, or even to age 65 or 70, depending on the policy. At the end of each term, the policy must be renewed with the premiums increasing at each renewal, reflecting age, health and lifestyle.
Since coverage is limited to a fixed period, premiums for term policies are initially much lower than comparable amounts of permanent life coverage. Term costs do increase over time, and eventually term premiums may exceed those of permanent life.