Term insurance is life insurance issued for a specific period of time and is often referred to as temporary insurance.

Examples are :

  • Insurance issued for one year but renewable at a higher rate for a number of additional years [e.g. Term to age 70 or 80] - often called Yearly Renewable Term [YRT]
  • Insurance issued for a level premium for five [or ten or twenty] years renewable at a higher level premium for a number of additional, five [or ten or twenty] year terms at a higher level rate. The renewable rates may or may not be guaranteed.
  • Insurance issued with a level premium to a specific age - e.g. age 65 or age 100.
  • Renewable term insurance does not usually illustrate cash values however those policies issued to a specific age may.