Term Life Insurance
A policy with a set duration limit on the coverage period. Once the policy is expired, it is up to the policy owner to decide whether to renew the term life insurance policy or to let the coverage end. This type of insurance policy contrasts with permanent life insurance, in which duration extends until the policy owner reaches 100 years of age (i.e. death). Investopedia Says:
These types of policies provide a stated benefit upon the death of the policy owner, provided that the death occurs within a specific time period. However, the policy does not provide any returns beyond the stated benefit, unlike permanent life insurance policies, which have a savings component that can be used for wealth accumulation. Related Terms:
Annual Renewable Term (ART) Insurance
Death Benefit
Decreasing Term Life Insurance
Life Insurance
Permanent Life Insurance
Pre-existing Condition
Renewable Term
Universal Life Insurance
Variable Life Insurance Policy
Whole Life Insurance |