Straight term insurance policy

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Straight term insurance policy

Term life insurance policy providing a fixed-amount death benefit over a certain number of years.

Straight Term Insurance Policy

A life insurance policy that provides coverage only for a certain period of time. A straight term insurance policy provides a benefit upon the death of the policyholder, but ceases to provide this benefit if he/she is still alive when the policy expires. Upon expiration, the policyholder may decide to renew the policy or allow it to lapse. If the policy lapses, the policyholder is not reimbursed for the premiums paid over the life of the policy. A term life insurance policy does not include some of the other benefits of a whole life policy, such as a savings component.