Term Insurance DefinedA term policy is a contract between a life insurance company and an insured, you, in which a specific sum of money will be paid upon the death of the insured in consideration of a monthly, quarterly, semi annual or yearly premium. The insured must die within a specific period of time, as stated in the contract, for the payment to be made.
The applicant may opt for a 5 year term, a 10 year term, a 15 year term, a 20 year term, a 25 year term or a 30 year term policy. Some term policies may be kept up until ages 65, 80 or age 90, or 95.
