Term Life Insurance
/turm lyf/
Coverage for a specific period with no cash value.
Definition
Term life insurance provides coverage for a specific period (term), typically 10, 20, or 30 years. If you die during the term, your beneficiaries receive the death benefit. Term life has no cash value and is generally the most affordable type of life insurance.
Example
David bought a 20-year term life policy for $500,000 to protect his family until his mortgage was paid off.
More Life Insurance Terms
Permanent coverage with guaranteed cash value.
Flexible permanent coverage with adjustable premiums.
The amount paid to beneficiaries when the insured dies.
The person who receives the insurance payout.
The savings component of permanent life insurance.
The stated amount of coverage on a life insurance policy.
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