What Is The Definition Of Term Life Insurance? 
Term life insurance is for temporary needs where the coverage duration is known and finite . Most term policies are available for periods of up to 30 years and may feature level annual premiums . There is no cash surrender value in most products -LRB- except for return of premium term -RRB- . At older ages , term rapidly becomes cost prohibitive and is generally not available for long durations . Term is a relatively simple product to understand and so affordable , it can fit most any budget . It is ideal in situations such as with young families who have a tight budget and need life insurance for protection for up to 30 years . For business situations , it is frequently used to fund buy-sell agreements to ensure the cash will be available for share purchases in the event of untimely death . For coverage that does not expire before you do , permanent -LRB- cash value -RRB- life insurance is more appropriate . Most term policies feature conversion without evidence of insurability to permanent policies later when they can better afford the premium for lifetime funding and coverage that can not be outlived . 