Term life insurance is a type of life insurance policy that provides coverage for a specific period, or "term," such as 10, 20, or 30 years. If the insured person dies during the term, the policy pays a death benefit to the beneficiaries. If the insured person outlives the term, the policy expires, and no benefit is paid. Term life insurance is typically more affordable than permanent life insurance because it does not build cash value and only provides coverage for a limited time.

Permanent life insurance is a type of life insurance policy that provides coverage for the insured person's entire lifetime, as long as premiums are paid. Unlike term life insurance, it includes a savings component known as cash value, which grows over time and can be borrowed against or withdrawn. There are several types of permanent life insurance, including whole life, universal life, and variable life insurance. These policies tend to be more expensive than term life insurance due to their lifelong coverage and cash value feature.