Okuzeka
Insurance vocabulary · Life & Health Insurance

Term life insurance

Meaning in insurance, with examples

nounCommon term

In insurance, term life insurance means: Life insurance that covers a person for a fixed number of years and pays only if the person dies during that period; it has no savings value.

In Turkish: süreli hayat sigortası, vefat teminatlı hayat sigortası, risk hayat sigortası

How it is used

The simplest and cheapest form of life cover, often sold with loans for the length of the loan. Customers choose a term, such as 10 or 20 years, and a sum insured. Often just called 'term insurance' or 'term life'.

Example sentences

  1. A 20-year term life insurance policy will protect your family until the children finish university.

  2. Term life insurance is cheaper because it pays nothing if you outlive the policy.

Common collocations

  • term life insurance policy
  • 20-year term
  • decreasing term insurance
  • level term
  • life insuranceInsurance that pays a sum of money to the named beneficiaries when the insured person dies, and in some products also builds up savings.
  • whole life insuranceLife insurance that lasts for the person's whole life as long as premiums are paid, and usually builds up a cash value over time.
  • beneficiaryThe person or organisation named in a policy to receive the money, for example the family member who is paid when the insured person dies.
  • sum insuredThe maximum amount an insurance company will pay under a policy, usually based on the value of the property or the amount chosen for a life policy.

More terms: Life & Health Insurance

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This page explains English vocabulary for learners. It is not financial advice.