Term Life Insurance
Definition
- A form of temporary life insurance whereby a policyholder purchases a term of life insurance coverage ranging from between five and forty years. Term life insurance is commonly used to cover obligations like mortgages, loans, or income for dependents.
Synonyms
timed insurance, limited period, extent of time, predefined duration, length of action
Alternate Spellings
term insurance
Related Terms and Acronyms
- Convertible Life Insurance — Definition,
- A type of term life insurance policy that has the option to be converted into a permanent life insurance policy such as whole or universal life insurance.
- Decreasing Term Life Insurance — Definition,
- A Term life insurance policy with benefits that decrease each year as the policyholder ages.
- Life Insurance — Definition, Very Important,
- An arrangement where an insurer agrees to pay a benefit to one or more beneficiaries in the event of the policyholder's death.
➥ CanEquity offers life insurance. - Single-Premium Life Insurance — Definition,
- Life insurance where all premiums are paid up front in a single lump sum payment.
- Term — Definition,
- The length of time you commit to repay a lender or bank at an agreed upon interest rate and payment schedule. The interest rate usually remains constant during this term unless the commitment states otherwise. For example, a five year fixed rate mortgage has a term of five years.
