A term life policy is a contract between you and an insurance company for a defined period, typically between 10 and 40 years. During that term, you promise to pay a premium each month. In return, the company promises to pay a specific amount of money – a death benefit – if you pass away during the term. 

 A permanent life insurance policy is a contract with a life insurance company to provide protection throughout your entire life, as opposed to term insurance that just provides coverage for a specified number of years.  Permanent life insurance policies offer a death benefit and cash value. The death benefit is money that's paid to your beneficiaries when you pass away. Cash value is a separate savings component that you may be able to access while you're still alive.