Term insurance is temporary life coverage. It terminates at a certain age, usually age 80 or age 85. This type of life insurance is usually available as a guaranteed 10 or 20 year renewable and convertible term. Renewable mean that future premiums are guaranteed and increase every 10 or 20 years. Convertible means that the owner of the policy can convert to permanent insurance protection without evidence of insurability. There are also term policies based on level premiums to age 65 and to age 75.

Term insurance has many applications in estate and financial planning:
· Young families may require substantial protection and can only afford minimum premiums.
· Coverage may be required for a short term loan and may be required as collateral.
· Mortgage companies or banks usually ask the mortgage applicant for life insurance to guarantee that a mortgage is paid off due to death.
· Companies sometime need key person life insurance on a key employees.
· Shareholders and partners often purchase life insurance to fund a buy/sell agreement.