What Does A 20 Year Term Life Insurance Policy Mean? 
Not all 20 year term policies mean the same thing . My company offered a 20 year non-renewable term policy which meant that the company would pay a death benefit to the beneficiary if the insured died during the precise 20 year period covered by the policy . The premium on that policy would remain level throughout the 20 year period . No benefits existed after the policy terminated . Today they offer a 20 year term policy that provides the same death benefit as before and the premiums remain the same as before , however , the policy can be renewed after the 20th year and for many years after that . The policy will terminate at which time coverage can not be renewed . The premium after the first 20 years is considerably more expensive than in the first twenty years . My company also offers Cash Value Term which for a slightly higher initial premium develops cash value . It works much like the other 20 year term policies except that at the conclusion of the 20 year period there are a variety of options that allow the policy to remain in force for a lower premium or select a permanent , reduced death benefit . 