In life insurance, a term policy is one which provides coverage for a specific period of time or term. After the expiration of the term, the policyholder can renew the policy for another term, but at a higher premium rate. If the policyholder does not renew the policy, then the coverage lapses and the policyholder is not entitled to any benefits.
A term policy is the simplest and most straightforward type of life insurance coverage. It does not build up any cash value, like whole life insurance does. Instead, it pays out a death benefit to the beneficiary if the policyholder dies within the term of the policy. If the policyholder survives the term, then the policy expires and the policyholder gets nothing.
Term life insurance is a popular choice for people who want to keep their life insurance coverage affordable. The premiums for term life insurance are lower than for whole life insurance, since there is no cash value component.
Here is a link that explains term life insurance in more detail: