Term life insurance does not have cash value, which is why it's more affordable. There are various types of permanent life that invest the cash value differently. There are two types of life insurance: permanent life and term life. Permanent life insurance has a death benefit for your beneficiaries and a cash value that you can use during your lifetime, and it never expires. Term life insurance also has a death benefit, but there's no cash value and your policy will expire after a specified amount of time. Related The difference between term life insurance and permanent life insurance is similar to the difference between renting an apartment and owning a home. When you rent, you have a lease for a certain term. When that lease is over, you can renew — but most likely with a rent increase. Likewise, term insurance lasts for a specified period, and when it's up you can reapply for coverage, but the premiums most likely will go up as you age and your health deteriorates.