What Is Term Life Insurance? 
Term life insurance is life insurance that covers you for a `` term '' , or temporary period of time . The most common terms are 10 , 15 , 20 , or 30 years . The premium will usually stay the same during the term , then jump up to a very high price at the end of the term . After that , it will continue to go up every year . Some policies simply end when the term ends . Term policies have no cash value . You will not receive any money back -LRB- unless you took ROP term , in which case it would return the premiums you paid in , at the end of the term -RRB- . People buy Term insurance for it 's relatively low price . If you can afford to pay the premiums for Whole Life or Universal Life , you might end up paying less overall , because your premiums can end at some point but your policy can stay in effect . With Term , when you quit paying premiums , your coverage ends . If you have a temporary need , Term can be a great choice . 