How Does Term Life Insurance Work? 
Video Transcript : How does term life insurance work ? It 's temporary . It does have conversion ability in case you want to extend it past the time that you need it , but it 's actually in increments of 5 , 10 , 15 , 20 , sometimes even 30 ; there 's a few carriers out there that actually do a 40-year term . Term is a very inexpensive way to cover financial indebtedness , future obligations for a temporary time , as well as other areas that you may want to look at , especially if you 're in business . You can indemnify each other as partners . Term insurance is temporary coverage for any time period that you can actually look at , and hopefully by the time your temporary coverage is over , that all your liabilities and other issues like even funeral and final expense are already paid for through your own asset accumulation . 