Term life insurance policy covers risk only during the selected term period. If the policyholder survives the term, the risk cover comes to an end. Term life policies are primarily designed to meet the needs of those people who are initially unable to pay the larger premium required for a whole life or an endowment assurance policy.

No surrender, loan or paid-up values are granted under term life policies because reserves are not accumulated. If the premium is not paid within the grace period, the policy lapses without acquiring any paid-up value. A lapsed policy can be revived during the lifetime of the life assured but before the expiry of the period of two years from the due date of the first unpaid premium on the usual terms. Accident and / or Disability benefits are not granted on policies under the Term plan.
Term life policies are the cheapest form of insurance. Premiums in a term policy pay for the insurance and no part of the premium in a term life insurance policy is used for investment purposes. Term life policies are the cheapest form of insurance. Premiums in a term policy pay for the insurance and no part of the premium in a term life insurance policy is used for investment purposes. The length of a term life insurance policy varies from 5 to 30 years.

Many people prefer term insurance to provide their families with the security cover, and then use the additional funds they would have paid into an endowment or other life insurance policy to make investments of their own choosing. Term life policies are suitable for those who need to provide financial security to their family but are unable to pay the larger premium required for a Whole Life or Endowment policy.

A term life insurance policy is very different as compared to a regular life insurance policy as it is for a specific period of time. After the term gets over such type of insurance can either be cancelled or renewed. The cancellation and renewal decision depends totally on the policyholder and he may do so depending on his circumstances.

Most insurance companies today offer term life insurance policies, but many agents would be reluctant to provide this policy. This is because generally the risk involved is more and the agent will not get much commission by selling a term life insurance as compared to what he will get on selling a regular life insurance policy.

	Straight Term: The insurance premiums and benefits remain constant throughout the term of the policy.
	Renewable Term: Can be renewed every time the coverage period lapses, irrespective of the status of the person’s health. In this policy, one can opt for annual renewable term, wherein the policy is taken for a year and is renewed annually for a total term ranging from 10 to 30 years.
	Level Term: Ensures a fixed premium until the end of the policy period, which can range from five years to 30 years.
	Decreasing Term: The amount for which you are insured falls over the course of the term of the policy. The premium, however, remains constant. This term policy is used when one needs to protect mortgage or income.
	Convertible Term: Can be converted from a term policy into a permanent one.
	Adjustable Premium: Allows insurance companies to offer lower premiums using less conservative estimates of mortality and administrative and interest costs.