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Term life insurance

Term life insurance Definition

Term life insurance is a type of life insurance that is temporary, as it covers only a specific period of time, the relevant term. It can be considered pure insurance because it builds no cash value. This is in contrast to permanent life insurance such as whole life, universal life, and variable universal life.

 

Term insurance is the cheapest way, in the short run, to buy a given amount of insurance death benefit on a coverage per premium dollar basis.

RELATED TERMS
Life insurance
Permanent life insurance
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