Quick Definition

Term life insurance is a type of life insurance policy that provides coverage at a fixed rate of payments for a limited period of time, after which it expires without value.

Examples

• 1A 30-year-old might purchase a 20-year term life insurance policy to ensure financial security for their young family in case of untimely death.
• 2A business partnership might take out term life insurance on each partner to protect against financial loss if one partner passes away unexpectedly.
• 3An individual with a large debt, such as a mortgage, might use term life insurance to ensure the debt can be paid off, protecting their family from financial burden.

Tags