This one's pretty easy. A term is simply the time that an insurance policy is active. So if you have a 5-year term, then you're covered for those 5 years. And if you die during that time, then your loved ones get paid the death benefit. However, once the term ends, your policy does too and you lose that coverage. In that case, you'd have to either extend or get a new policy to be covered again.
Articles in this section
- What is an irrevocable beneficiary?
- What is a collateral assignment?
- What is a policy?
- What is a beneficiary?
- What is underwriting?
- What is a term?
- What is the wellness rider?
- What is the difference between a will and life insurance?
- What's the difference between a Quote and an Estimate?
- What is term life insurance?