1. Type of life insurance that pays a specific sum of money on the death of the insured within a covered period or at the end of the covered period if the person is still alive. If the insured dies before the maturity date, payment is made to a beneficiary of the policy. 2. A type of life insurance policy in which the cash value and face value are equal to each other at the policy’s maturity date.
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UK: A life insurance policy under which the sum insured is payable on the sooner of death or expiry of a given term of years. The policy combines savings with life protection and can be used to repay mortgages and other loans. The policy generally acquires a surrender value and loan value after a period of time. The policy can be with ‘with’ or ‘without profits’. See HOUSE PURCHASE SCHEMES.