What is the Meaning of a Term Policy?

A term life insurance policy is life insurance that provides temporary coverage for a certain period of time, usually up to thirty years. However, some insurers may offer term life plans with 35 or 40 years of protection.

The term of a term policy is the duration of time you are provided coverage.

Term life plans may offer policy terms of 10, 15, 20, 25, 30, 35, or 40 years.

There are even policies that provide 1 or 5 years of coverage.

Level term life insurance provides premiums that never increase and coverage that never decreases during the policy term.

Level term life insurance is the most popular type of term life plan.

Learn more about a term policy meaning and how term life works.