Term Insurance

What is Term Insurance?

Term insurance is a type of insurance which provides life cover for a specified term of years. Each term insurance policy has an amount paid out in the event of death, a specified term, and a premium to be paid.

With term life insurance, if the insured person dies before the end of the term the death benefit is paid, but if the term expires before death no benefit is paid.

Term insurance prices tend to be lower than on whole life insurance cover, as unlike whole life insurance, they have no cash value at the end of the term.

For further information about term life insurance see the Wikipedia definition.

Learn a new bookkeeping term

Random bookkeeping terms for you to discover.

Link to this page

Click in the box and paste this term insurance definition link to your site.

Return to the Dictionary

Last modified March 23rd, 2016 by Team

You May Also Like