A term life cover is a policy with a fixed duration limit set on its coverage period. As soon as the policy expires, the policy owner can take a decision on renewing the term life policy or terminating the cover. A term life policy differs from permanent life insurance cover where the duration can be extended until the policy owner reaches hundred years of age or dies before that age.
A term life policy will offer a face amount stated on the policy as the death benefit to the beneficiaries of the policy owner with a condition that death occurs within the time period that has been fixed at the time of purchase of the cover. A term life insurance policy will not provide any financial returns beyond the face amount benefit in direct contrast with permanent life insurance cover that has a savings component which is attached to it for the purpose of wealth accumulation. The level term for these kinds of life insurance policies could be fixed at ten, twenty or thirty years