What is term insurance?

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September 2016
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Really good question! Term is a type of life insurance that provides a potential death benefit for a fixed period or "term."  This is commonly a flat premium for say, 5, 10, 15, 20, or 30 years.  After the end of the term the policy no longer provides a death benefit. The other common characteristic of term life is there is generally no cash accumulation, which helps keep the cost relatively low. Term is often characterized as temporary insurance.  (There is also annual renewable term "ART" where premium increases each year--that is not popular with consumers, and is usually found as part of an employee benefit plan.) I hope that answer helps!   

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