Term insurance

Term insurance

Provides a death benefit only, no build up of cash value.

---

term insurance

A type of life insurance in which the insurance company pays a specified sum if the insured dies during the coverage period. Term insurance includes no savings, cash values, borrowing power, or benefits at retirement. On the basis of cost, it is the very least expensive insurance available, although policy prices can vary significantly among firms. Compare cash-value life insurance.

---

Term insurance. A term life insurance policy provides a guaranteed death benefit for a set period of time, such as five, ten, or 20 years, provided you continue to pay the premiums as they are due.

At the end of the term, the coverage ends unless you renew the policy or switch to another one.

Term life insurance policies have either a level term, which means that the annual premium remains the same for the life of the policy, or a graduated term, which means that the premium is smaller in the early years and grows larger each year. In most cases, level term policies cost less if you keep the policy in force for the entire term.

Term policies don't accumulate a cash value, so you get nothing back if you end your coverage before the end of the term. However, term insurance may be less expensive than a permanent policy providing the same coverage, although the cost of new coverage increases as you get older.