Term life is sometimes referred to as "temporary" life insurance because your coverage lasts for a specific period of time, it is not permanent.
Just like your auto or home insurance, term life is for a specific period of time. Most term life plans offer you the option of choosing your life insurance protection for a period (term) of 10, 15, 20 or 30 years.
With a level term life insurance policy you would pay the same premium each year (or month), while the amount of life insurance you have remains the same until your term expires.
Term life costs a lot less than a permanent life insurance policy for two main reasons:
1. Term life is temporary, while permanent life provides lifetime protection.
2. Term life is pure life insurance protection, while permanent life insurance may build some cash value.
You can choose to buy booth a term life policy and a permanent policy, if that's what you need to meet your short an longer term life insurance needs. It's up to you.
