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Term refers to a term of years, and today's term policies are generally available for 1-, 5-, 10-, 15-, 20-, 25-, and 30-year periods. Premium will be level for the initial guaranteed period, then will revert to renewable rates, which the carrier may currently declare for annual renewal - subject to a guaranteed maximum renewal rate. If Whole Life is the granddaddy of permanent life insurance, there is almost twice as much term life (including group life insurance) currently providing death benefit than all other forms of life insurance. Second-to-die policies can also be used in business situations where the death of one partner or principal can be endured, but not both. While these policies enjoy more favorable pricing because of the fact that death benefits aren't paid until the second death, they should not be used when there will be liquidity needs for a surviving spouse. Because term premiums are directly related to the increasing probability of death as an individual ages, term policies are best suited for short-term or specified-term needs. The insurance company has complete discretion over what it can charge for the renewal premium, subject only to the scheduled maximum. Most policies will quote probable renewal premiums beyond the guarantee with a substantially higher guaranteed maximum for each attained age. When the guarantee period is over, premiums resume the inexorable annual increases implicit in a mortality curve. During the guaranteed period, the level premium essentially reflects a temporary and "box"-like leveling of the mortality curve.

There are two timeframes incorporated into this type of term policy: the guaranteed period and the period beyond the guarantee.