A temporary form of life insurance with a protection period of one to twenty years that requires the policyholder to pay only for the cost of protection against death and the premium is guaranteed not to change during the term period. Each time the policy is renewed, however, the premium increases since it is assumed that the policy holder is statistically more likely to die. There is no cash value associated with this type of life insurance. See: Whole Life Insurance; Universal Life Insurance; Survivorship Life Insurance
Life insurance protection that pays the sum insured only if the insured dies within the term of the policy. See also Decreasing Term Insurance, Deposit Term Insurance and Convertible Term Insurance.
A type of life insurance policy that is effective for a specific period of time. In general, term life policies provide coverage only (no cash value) and are renewable up to a certain age.
A low-cost form of life insurance that stays in effect for a specific period of time. If the insured dies during the coverage period, the beneficiary will receives the death benefit. If the insured survives the specified time period, the policy expires and the obligations terminate. Term insurance works best when the coverage is needed for only a specific period of time or near-term cost is an overriding factor. In early years, term insurance costs are less then a Whole Life or other cash value policies. Term insurance becomes increasingly expensive as the insured grows older. There are a number of variations of term life insurance. These variations are as follows: Annual Renewable Term Life Insurance (ART), Decreasing Term Life Insurance, and Renewable Term Life Insurance.
Insurance which provides a death benefit only. Premiums increase each year, or, in the case of level premium renewable term, at the end of each renewal period (typically 5,10,15 or 20 years). Level premium decreasing term has a level premium, but the insurance benefit decreases on each policy anniversary. Since term insurance can become quite expensive at older ages, it is often used to cover protection needs of a shorter duration or to cover a specific need such as an outstanding loan balance. It may be convertible to some form of permanent life insurance.
Term life insurance is insurance that is temporary, as opposed to permanent life insurance. Term life insurance is often sold in 5 year or 10 year terms. Term life insurance can be very affordable when the buyer is young, and quite expensive for an older purchaser.
form of life insurance that has no cash value and provides insurance protection for the specified term covered by the policy, but can usually be renewed from term to term.
Insurance that provides a lump sum payment on death or terminal illness of the insured person. It has no surrender or cancellation value. Premiums generally increase with age.
Low-cost life insurance which stays in effect for only a specified, limited period
Insurance that provides only death benefits, for a specified period of time, and does not provide for the accumulation of any cash values.
an excellent choice if you need insurance protection for a short period of time
a policy, which functions solely on the criteria of your life and death
A life insurance plan that covers the insured for only a certain period of time (term), not for the holder's entire life. The policy pays death benefits only if the insured dies during the term.
Life insurance payable to a beneficiary only when an insured dies within a specified period. This type of life insurance has no cash value.
Life insurance plan that terminates when employment ceases. Conversion policies are available.
A type of life insurance where the insured only pays for the cost of protection of death. No cash value is built up, so term insurance is cheaper; however, as the insured gets older, the cost of premiums increases.
Life insurance coverage for a specific term of years with no cash value accumulation.
Term life insurance is so named because it provides financial protection for a limited, specified period of time. If death occurs within the time limits on the policy, the face amount of the policy is payable. Nothing is paid if the insured person survives beyond the length of the term policy. Unlike some other types of policies, term insurance does not generate cash values. It is for these reasons that term insurance is usually the least expensive means of protection. In addition, some people on limited incomes purchase term insurance for basic insurance protection and, as their incomes rise, convert the policy to other forms of life insurance. Renewable or convertible options may be included in a term life insurance policy. A renewable policy permits the owner of the policy to automatically extend the policy length regardless of the health or occupation of the insured, with a possible increase in premiums at renewal. A convertible policy permits the owner to change the insurance into a whole life or other permanent life insurance policy regardless of the health or occupation of the insured.
Life insurance that purchased for a specific term or period, usually sold in 10, 20 or 30 year policies .
Life insurance that provides coverage for a specified period of time and pays a death benefit only if the insured dies within that time frame. Does not earn a policy cash value.
Term insurance is life insurance coverage for a specified period of time. This can be at a guaranteed rate or in some cases a guaranteed rate for a period of time and then a projected rate. Term periods can be for 1 year, 5 years, 10 years, 15, 20 and even 30 years. For example: 30 year level term would guarantee a level premium for 30 years based on a specified death benefit. Term life insurance is usually the least expensive form of life coverage, at least initially. After the initial term period of years, 5,10,15, 20, 30 etc. the policy could terminate or it can renew at a higher premium. If you are allowed to renew it at a higher premium (based on your then attained age), it is called renewable term life insurance.
A life insurance policy purchased for a term of years. If the person dies during this term, the beneficiary receives the face amount of the policy. The policy expires at the end of the stated number of years.
Life insurance that provides coverage for a specified period of time. It does not accumulate cash values.
Protection during limited number of years; expiring without value if the insured survives the stated period, which may be one or more years but usually is five to twenty years, because such periods usually cover the needs for temporary protection.
Temporary insurance that provides life insurance protection for a specified time period. Death benefits are payable only if the insured dies during the specified period. If a loss does not occur during the specified term, the policy lapses and provides no further protection. All premiums are retained by the insurance company. Typically, term insurance premiums do not have a “savings component”; thus, term insurance does not usually create cash value.
Life insurance that builds no cash value and that provides only temporary coverage for a specific period.
A life insurance policy that is in effect only for an agreed-upon length of time. When that time is up, the policy holder may sometimes renew the policy or let it lapse.
A type of Life Insurance policy that has no cash value and is designed for a specified period of time such as 5, 10, 15, 20 or 30 years.
A short-term policy that provides a death benefit and is renewable. The policy has no cash value, but some may be able to be converted to a permanent policy.
Insurance that provides death benefit protection for a specified length of time and pays benefits only if the insured dies while the term insurance is in force.
A type of low-cost, life insurance that only pays benefits if the insured dies during the specified period of time. Term life insurance does not build cash value.
Affordable alternative to traditional life insurance, term life insurance offers pure coverage without investment features, to keep premiums low. Various terms and products available to meet your specific goals Level benefit plan locks in the benefit amount for the selected term Decreasing benefit plan offers gradual reduction of benefits and premiums--ideal for special situations such as mortgage coverage May double benefits in the event of covered accidental death Guaranteed renewable for entire term regardless of changes in your health Guaranteed convertible to cash-value coverage up to age 65 regardless of changes in your health
Life insurance payable to a beneficiary only when an insured dies within a specified period. The coverage expires without value if the insured survives the stated period.
Risk insurance, similar to car insurance. It builds no cash value and is only in effect for a specified term.
A form of life insurance which provides coverage for a specified period of time and does not build cash value.
insurance for a specific period of time that provides only a death benefit (does not have an investment feature to accumulate cash values the way whole life insurance does). Premiums are generally much lower than for cash value life insurance, and also generally increase each year.
A type of life insurance that pays if you die during a specified time such as a year. Term insurance usually has an increased pattern of premiums over time and is pure protection (no savings).
Temporary life insurance payable on the death of the life insured, provided that death occurs within a specified period of time.
Life insurance coverage protection during a stated limited number of years. The policy expirers at the end of the term without value if the insured survives the covered period.
Life insurance coverage for a set time period where the insurance company pays a tax-free death benefit (payment) if the insured dies during that period of time. Many term policies are only offered for five, 10 or 20 year periods and can be renewed at the end of the policy, usually at a higher cost.
Life insurance that does not build up cash value as it is based on the amount of insurance, not the amount plus another chunk used for investments. It covers you for a fixed span of time –up to 30 years.
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.
Insurance that covers the insured for a certain period of time known as the "term". The policy pays death benefits only if the insured dies during the term.
Life insurance that builds no cash value and that provides only temporary coverage, usually for one year.
Life insurance that provides a death benefit only if the insured dies during the period specified in the policy. If the insured survives until the end of the period, coverage ceases without value. Contrast with permanent life insurance.
A type of life insurance that provides a death benefit if the insured dies during a specified period.
this type of life insurance operates within a fixed term and will only pay out if the policyholder dies within the specified period for which the life insurance has been taken out.
Term life insurance is life insurance that is purchased for a specific period of time, as opposed to whole life insurance. Term insurance is normally sold in 5, 10, 20 or 30 year periods. Term life insurance is the most affordable for the buyer when they are young but, becomes quite expensive as the insured ages and needs to purchase insurance after the period has ended.
Life insurance that covers the insured person for a specific period of time and pays a death benefit only if the insured dies during that term. This type of insurance does not build up a cash value.
Life insurance that provides coverage for a specific time period and offers no cash value.
Life insurance that provides protection only for a specified period of time.
contract that provides a death benefit but no cash build-up or investment component. The premium remains constant only for a specified term of years, and the policy is usually renewable at the end of each term.
Insurance that is good for a specific amount of time is referred to as term insurance. It may be good for a year, five years, ten years, or whatever, and is considerably less expensive when purchased during those years when insurance companies statistically don't expect you to die. When the term on the insurance runs out, the policy ir repriced according to your age. The older you are, the greater the cost becomes.
Covers a person for a period of one or more years. It pays a death benefit only if you die during that term. It generally does not build a cash value.
Term life insurance is "temporary" coverage usually offered in level periods of 5, 10, 15, 20, 25, and 30 years. Term life insurance is designed to cover specific risks for a specific time period. Term insurance is the cheapest form of life insurance.
A type of life insurance that provides coverage for a specified period of time—generally one, 10, 20, or 30 years, or until the insured reaches 65 or 70 years of age.
Insurance that pays benefits when the insured dies within a certain time period.
Life insurance that provides coverage for a fixed number of years. Unlike permanent life insurance, a term life insurance policy does not usually accrue additional values that the owner can withdraw or that can increase the death benefit.
Administered by Fort Dearborn Life. This policy provides a designated survivor(s) with a monetary benefit.
Life insurance that does not build up cash value and where the premium normally increases as the insured gets older.
Life insurance issued for a specific period of time, after which it is no longer in force. See Term Life Insurance Guide.
Life insurance under which the benefit is payable only if the insured dies within a specified period.
Term life insurance is the original form of life insurance and is considered to be pure insurance protection because it builds no cash value. This is in contrast to permanent life insurance such as whole life, universal life, and variable universal life.