Term insurance

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Term insurance

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

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References in periodicals archive ?
Thus, long term insurance business and general insurance business witnessed a GWP growth of 9.64 percent and 2.80 percent respectively, when compared to the corresponding period of year 2018.
It was revealed that while 65% of respondents owned life insurance the percentage of term insurance owners was a paltry 21%.
Under section 80C of the Income Tax Act, 1961, a term insurance policyholder can avail tax deductions of up to Rs 1.5 lakhs.
But term insurance has the additional advantage that a portion can be sold in a life settlement and the balance of the policy retained.
Keep in mind, however, that buying term insurance means paying ever-increasing premiums for a constant amount of coverage.
Besides, he can customise a term insurance with optional riders without altering the simplicity of the term plan to provide additional protection to his family.
The shift led many life insurance agents to focus on selling term insurance instead of solving the actual lifelong life insurance need.
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Because whole of life insurance is not limited to a specific period in the way that term insurance is, premiums are more expensive because the insurance company eventually pays out.
Non-Par Decreasing Term Insurance Product (NTA) is an income protection-oriented non-par decreasing term product with a variety of coverage terms (15 years, 20 years and coverage term to age 55 and 60) and premium payable throughout the coverage term.
TERM INSURANCE. If an estate plan is to be built on a solid foundation, life insurance protection is essential.