Term Life Insurance Meaning and Definition

Pronunciation

/ˈtɜːrm ˈlaɪf ˈɪnʃʊərs/

Part of Speech

Noun

Definition

A type of life insurance that provides coverage for a specific period of time, such as 10, 20, or 30 years.

Examples

She purchased a term life insurance policy to ensure her children’s education expenses were covered.
Term life insurance is often used to bridge the gap between the death of a spouse and when the younger spouse reaches retirement age.

Synonyms

Temporary Life Insurance
Short-Term Life Insurance

Antonyms

Whole Life Insurance
Permanent Life Insurance

Additional Information

Term life insurance is often less expensive than whole life insurance, as it does not have a cash value component. It is designed to provide financial support to dependents in the event of the policyholder’s death. Term life insurance can be converted to permanent life insurance if the policyholder’s needs change.

There are several types of term life insurance, including level term life insurance and decreasing term life insurance. Level term life insurance provides a fixed death benefit, while decreasing term life insurance provides a death benefit that decreases over time.

Etymology

The term “term” refers to the specified period of time for which the insurance coverage is in effect.

Usage Notes

Term life insurance is often used in financial planning to ensure that dependents are financially protected in the event of the policyholder’s death.

Cultural References

In popular culture, term life insurance is often referenced in literature and film as a way to provide financial security for loved ones.

Idiomatic Expressions or Phrases

“To have a term life insurance policy” is often used to describe having a death benefit that provides financial support to dependents.

Related Words or Phrases

Life Insurance
Insurance
Term

Collocations

Term life insurance policy
Term life insurance coverage

Frequency of Use

Term life insurance is a commonly used term in financial planning and insurance industries.