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Term life insurance is the most basic type of life insurance and provides coverage over a certain period of time. In contrast to permanent life insurance, term insurance which does not expire, term life insurance offers lower initial costs. When you purchase term life insurance for a period of time (usually five, 10 or 25 years) you are essentially paying for the death benefit that your beneficiaries will receive.
Permanent policies fund death benefits but can also accumulate cash value. Term life is a more affordable life insurance and is a better option for people on a tight budget. You can buy high levels of protection based on your needs, but remember that your term policy will expire at the end of your purchased term. If you still require coverage you will have to renew the policy or take out another one.