Policy term

The policy term is the period during which you are covered. On a term plan, a claim is payable if death occurs within it and nothing is payable after it ends.

People commonly choose a term running to an age at which dependants would be financially independent, which is often around retirement.

Related terms

• Premium payment term How long you pay premiums for. Often the same as the policy term, but not always.
• Term insurance Pure life cover for a fixed period. Pays out if you die during the term, and pays nothing if you outlive it.

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