How Does A Term Life Insurance Work? 
Term life insurance is considered `` pure insurance '' that is normally offered without frills . The premise is simple . You pay a premium for a stated death benefit , say $ 250,000 . The premium is payable for a pre-determined period of time , such as 20 years . If you continue to pay your premiums , and if you die during the 20 year policy time frame , the policy pays . A typical 2 year suicide clause applies . Some carriers will `` trick out '' the policy with add-on riders such as return of premium , disability benefits , critical illness benefits , etc. . But the basic policy is `` If you die we pay if you do n't we do n't '' . 