Life Insurance
InsuranceGlossary term
Definition
Insurance that pays a death benefit to beneficiaries when the insured person dies. Types include term life (temporary coverage) and permanent life (lifetime coverage with cash value).
Related terms
- Term Life InsuranceLife insurance that provides coverage for a specific period (term), typically 10, 20, or 30 years. More affordable than whole life insurance but has no cash value.
- BeneficiaryA person or entity designated to receive assets from a trust, insurance policy, retirement account, or will after the owner's death.
- PremiumThe amount paid for an insurance policy, typically monthly, quarterly, or annually. Premium costs vary based on coverage amount, deductible, and risk factors.
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