If you don't die during the term, your beneficiary receives nothing. Permanent insurance policies provide insurance protection for your entire life as long as the policy remains in force. In addition to the insurance protection provided, this type of policy also builds internal cash values, often described as a savings account within the policy. You also need to know that the cost of life insurance will depend upon the type of policy, your age, and your health. A life insurance contract is made up of provisions, options, and riders.
Provisions describe or explain features, benefits, conditions, or requirements of the contract.
Options are features of the agreement that require you to make a choice regarding some aspect of coverage. Finally, you need to know the tax consequences of owning life insurance. Life insurance premium payments are not tax-deductible expenses. In general, the death benefit paid to the beneficiary is not included in gross income for federal income tax purposes, because it is paid with after-tax dollars. You must be very careful about who owns the policy and who the beneficiaries are, in order to avoid estate taxes on the proceeds when you die.