Life Insurance Term Life InsuranceA type of life insurance that has a set limit on the longevity of the policy. The insured can be covered up to the age of 70 or 80 years old, depending on the company and the state. The cost of the policy is much less expensive than a permanent life insurance plan and the rates can be guaranteed not to increase from anywhere between 5 and 30 years.Permanent Life InsuranceThis type of life insurance does not end like term insurance. As long as you pay your premiums, (cost of insurance) your life insurance stays in force for the rest of your life. Also, as compared to term life insurance, permanent insurance has a cash value component, which is a dividend paid by the policy and accrues as the policy matures.