Term insurance pays if the death occurs during the “term” of the policy, generally five to 30 years. Two types of term insurance are available.

• Level term where the death benefit stays the same throughout the duration of the policy as does the payment.
• Decreasing term means that the death benefit drops over the course of the policy’s term. This type is commonly used to insure that a mortgage will be paid off in the case of a primary income earner.