Term insurance is a type of life insurance that has no cash value. The policy only provides coverage for a specific period of time, after which an additional payment must be made in order to obtain coverage for an additional period of time. The cost of term insurance increases over time, as a person becomes older and is therefore at greater risk of death. If a person dies during a covered period, the beneficiary is paid the amount specified in the insurance contract. If the person does not die during a covered period, the beneficiary receives nothing.