Term Life Insurance

A contract with an insurance company whereby you pay a fee, called a premium, and in exchange, the insurer pays a death benefit to the beneficiary when the insured dies. The money provided is meant to replace the income the insured was earning, and on which the beneficiary depends. Term life policies provide coverage for a specific period, typically five to 30 years, after which time the policy is cancelled and no death benefit is paid. See Permanent Life Insurance

Glossary