Term life is like renting coverage: you pay for protection for a set period, and when the term ends the coverage ends, with nothing paid back.
Pure death protection: pays only if the insured dies during the term. No cash value and no maturity payment.
Common terms are 10, 20 or 30 years. Coverage ends when the term expires unless it is renewed or converted.
The lowest premium for the largest death benefit, especially at younger ages.
Insurers set maximum issue and renewal ages.
Renewable term: can be renewed at the end of the term without proof of insurability, at the premium for the insured's attained age.
Convertible term: can be exchanged for a permanent policy without proof of insurability.
By the shape of the death benefit, term is level, decreasing or increasing (next page).