A life insurance policy that provides protection for a certain period of time. If death occurs during that time, the benefits are paid to the beneficiary. Term insurance is the least expensive type of life insurance because the policy generates no cash value. Universal life insurance, in comparison, has an investment component and allows cash value to build over the life of the policy.
term life insurance
Term life insurance is an insurance policy that pays out to a beneficiary in the event of the death of the insured up to a certain date as determined by the policy.
An example of term life insurance is an insurance policy you buy that will pay a death benefit to your spouse if you die within the next 30 years.