What Is A 5 Year Term Life Insurance Policy? 
Just as the name sounds , a 5 year term insurance policy only guarantees the premiums will remain the same for the first 5 years - after that the policy becomes annually renewable and the premiums will increase each year -LRB- based on age -RRB- . Many companies feature a minimum 10 year policy and the rates are often cheaper to secure a 10 year term policy than a 5 year policy . Term life insurance guarantees the premiums will remain fixed for a specific number of years -LRB- 5 , 10 , 15 , 20 , 25 , or 30 years -RRB- . Once the initial period of premium guarantee expires , the program changes to either annual renewable term insurance with premiums increasing each year -LRB- based on age -RRB- or the premiums remain the same and the death benefit decreases each year -LRB- this structure is commonly seen on term insurance that is featured on a universal life chassis -RRB- . 