Many insurers sell policies with terms up to 30 years. Your beneficiaries get the full payout. If you outlive the term of the policy, you are no longer covered. You can buy a new term policy, but the expired policy is finished. Cash-value life insurance is a hybrid that combines insurance and a conservative investment.
Consumers often become confused because many of the details of the policy are kept secret.
For example, when you purchase a cash-value policy your agent is not likely to tell you how much of the premium cost will be paying for insurance and how much will be invested. Agents make their money on commissions and commissions on cash- value policies are much higher than on term policies. This is a VERY expensive way to get two years of coverage. A portion of the higher premium associated with cash-value life insurance is invested on your behalf. You build a balance - a cash value that can be redeemed if you want to give up the policy.