term insurance

Expires-if-you-don't policy

Term insurance is life insurance that covers a fixed period—typically 10, 20, or 30 years—rather than the insured's entire lifetime.

If the policyholder dies during the term, beneficiaries receive the death benefit; if the term expires, coverage ends with no payout.

Term insurance costs less than whole life insurance because it has no cash value component: They bought term insurance when the kids were young.

Related

premium payments · dependents · premium · no frills · beneficiary · lapse · expiration · grace periods · riders · temporary · convertible · renewability · actuaries · underwriting · cash value · face value · coverage · widow

Categories
Opposites
policy duration/permanence

term insurancewhole life insurance

Coverage lasting until death

whole life · universal life insurance · annuity

risk protection vs. no protection

term insuranceuninsured

Lacking protective coverage

self-insured

FINANCIAL PROTECTION vs. NO PROTECTION

term insuranceself-insurance

Assuming risk personally

Family

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Used worldwide · Timeless · Rated G