A term life insurance policy provides temporary protection. The benefit only pays if the policyholder dies within a specified period of time. It is also a renewable policy which means at whatever renewable term you buy (i.e. 1 year) you have the option to continue the policy or cancel. A term policy is frequently used to provide additional temporary coverage for someone who has children. Once the children are grown you might not need the extra coverage. Another reason for extra Term life coverage is to pay off a mortgage if a spouse does not live to do so. will increase as you get older each renewal time and you are not investing the premium like a Whole Life or Universal Life policy. Term Life is cheaper and works the same as any other life policy but you are not investing your money.