Term Life

A “term life” policy is a policy that insures the life of the insured person for a specified period of time called the “term” of the policy. The term is often 10 or 20 years. After the term expires, the insurer is no longer obligated to continue the insurance, though the policy owner may be able to buy a new term policy from that insurer or another insurer, but likely at a higher price and only after new underwriting that may include a medical examination of the insured person. A term life policy typically does not have any savings account component and therefore has no cash value.