What Is A 5 Year Term Life Insurance Policy? 
As mentioned above , a 5 year term insurance is an insurance policy that is in force for 5 years then expires . It is designed for a short term need and or specifically for the purpose of converting to a Whole Life policy within that 5 year period . Most Term policies are `` convertible '' to permanent insurance and some companies limit the type of permanent insurance their term policies may be converted to . In `` converting '' a term to a permanent policy what happens is the face amount of the Term , or a portion of that amount is converted to a Whole Life or Universal life policy without the insured having to undergo additional medical testing or underwriting . The premiums paid to the Term policy are not credited to the new permanent policy and the new premium will be based on the current age of the insured . 