Term life insurance,
Definition of Term life insurance:
Simplest and usually the cheapest type of life insurance that stays in effect for a specified period or until a certain age of the insured. It pays the face amount of the policy in case the insured dies within the coverage period (term) but pays nothing if he or she outlives it. Also, (unlike in whole life insurance) whereas it premium cost is low in younger years, it generally increases rapidly with the age of the insured. Term life insurance is used commonly as an insurance cover for a loan repayment or post-death liabilities such as estate taxes. Also called term insurance.
When you buy a term life insurance policy, the insurance company determines the premiums based on the value of the policy (the payout amount) as well as your age, gender, and health. In some cases, a medical exam may be required. The insurance company may also inquire about your driving record, current medications, smoking status, occupation, hobbies, and family history.
Life insurance that pays a benefit in the event of the death of the insured during a specified term.
Term life insurance, also known as pure life insurance, is a type of life insurance that guarantees payment of a stated death benefit if the covered person dies during a specified term. Once the term expires, the policyholder can either renew it for another term, convert the policy to permanent coverage, or allow the policy to terminate.
How to use Term life insurance in a sentence?
- Term life insurance guarantees payment of a stated death benefit to the insured's beneficiaries if the insured person dies during a specified term.
- When seeking insurance, dont rush into buying expensive permanent life insurance before considering if term life insurance sufficiently meets your needs.
- Term life premiums are based on a person’s age, health, and life expectancy.
- These policies have no value other than the guaranteed death benefit and feature no savings component as found in a whole life insurance product. .
Meaning of Term life insurance & Term life insurance Definition