Term assurance

life assurance under which benefit is payable only on death of the life assured on a predetermined date; sometimes called temporary assurance.
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A simple form of life assurance whereby in return for a premium an Insurer agrees to pay a fixed sum if the proposer should die within a stated period. No benefit is payable if the proposer survives the period. Under a decreasing term assurance, the benefit payable decreases from year to year.

Term Contract

A form of reinsurance contract written for a stipulated term (usually one year). The contract automatically expires at the end of the term and renewal must be negotiated. See also Continuous Contract.

Term insurance

Type of insurance that is in force and provides protection for a specified period of time (the term). It does not build cash value and if the insured survives the stated period, it expires without value. Insurance is payable to a beneficiary at the death of the insured provided death occurs within a specified period or before a specified age. Also called term life insurance .

Term Loan

A loan by Insurance companies or banks for a period generally in excess of five years. The loan is made to business institutions and typically has an agreement on the part of the debtor to restrict his performance to an area circumscribed by various ratios.

Term of Credit

The period of time allowed to a broker for the payment of premium to the underwriter. Basically, this is five months after the inception of risk, but may be reduced or extended for certain types of risk.

Term of Policy

The period for which the Policy runs. This is usually the period for which a premium has been paid in advance. In some instances it may be for a year, or longer (engineering policies on erection risks for example).