If the insured dies during the policy term, the beneficiary is paid the face value of the policy. Coverage is provided for a specific time or term, usually 1-5 years, or as long as 10 to 20 years. Many policies can be renewed repeatedly, which means they potentially provide lifelong coverage. Some policies provide protection through age 100, others only to age 65 or 70. The policy must be renewed or repurchased to keep it in effect.
Premiums remain the same during the policy term.
But, with each renewal, the premium will increase because the policy holder is older and has a greater chance of dying during the policy term. The higher cost is generally not a problem because the family income should be increasing, too. The amount of insurance needed usually decreases as the children grow up and as assets accumulate. To continue coverage past the stated time period, the policyholder may have to apply for a new contract. He or she may also be required to have a medical examination.