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Term life insurance

Life insurance terminology shouldn't be confusing. Here is the definition of term life insurance.

Term life insurance

A category of life insurance that is in effect for a fixed amount of time. If the insured dies before the term ends, the insurance carrier agrees to pay any beneficiaries a lump sum of money. This insurance category has no cash value, but can have a significantly higher face value for lower premiums than an equivalent permanent life insurance policy.

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