A term life policy is a type of life insurance that provides coverage for a specific period, usually ranging from 10 to 30 years. If the insured person passes away during this term, the policy pays a death benefit to the beneficiaries. This type of policy is often more affordable than permanent life insurance because it does not build cash value. At the end of the term, the policyholder can choose to renew the policy, convert it to a permanent policy, or let it expire. However, if the policy expires and the insured is still alive, there is no payout, and the coverage ends.