Term Life Insurance

A life insurance policy which provides a stated benefit upon the holder's death, provided that the death occurs within a certain specified time period. However, the policy does not provide any returns beyond the stated benefit, unlike an insurance policy which allows investors to share in returns from the insurance company's investment portfolio.

Term life insurance, which is usually the least expensive form of life insurance, pays a death benefit to your beneficiary or beneficiaries if you die while the insurance is in force. If you live past that period and don't renew your policy, or if you stop paying the premium, the coverage ends and no payment is made.

Insurance that covers the insured for a specified period such as one, five, or 10 years, often with an option to renew. Premiums are paid throughout this time, but generally become higher during the course of the term, as the policyholder grows older.

Term life insurance is for a fixed period of time as described in the policy agreement. Form of pure life insurance having no cash surrender value and generally furnishing insurance protection for only a specified or limited period of time; though such policy is usually renewable.

Term life insurance is a type of life insurance that is temporary, as it covers only a specific period of time, the relevant term. It can be considered pure insurance because it builds no cash value. This is in contrast to permanent life insurance such as whole life, universal life, and variable universal life.