Do I get money back at expiry?

Pure term usually returns little or nothing—check the product form.

Can I skip whole life entirely?

Yes if you only need a high temporary sum; add other tools for lifelong or savings goals.

Term Life Insurance

📈 Economics By CampusDown Wiki Editorial Team Last updated November 6, 2026 Views 2

Term life insurance pays if death (or covered disability) occurs within a fixed term; otherwise coverage typically expires with little refund.

Contents

1. What term life is
2. How it sits beside other products
3. Before you buy
4. Bottom line
5. FAQ
6. References

What term life is

It covers a window—10/20/30 years or to a target age—then usually expires without a savings pot. That is why it is cheaper than whole life for the same sum assured. Yaari (1965) framed life insurance as protection against lifetime uncertainty for dependents.

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How it sits beside other products

Medical bills belong with indemnity health cover; retirement cash flow with national pension, pension savings and retirement pensions. Strong bequest motives (Bernheim, 1991) may favor whole-life mixes, but premiums should not crowd out living costs.

Before you buy

Sketch adequacy from years of dependency and debts minus assets and public benefits. Misstatements on health questions can void claims—the underwriting answer to adverse selection (Rothschild & Stiglitz, 1976). Read cooling-off rules and renewability (FSS guidance). When using an agent, prioritize coverage gaps over commission stories.

Bottom line

Choose term when the job is time-bound income replacement.
Split savings/legacy goals into other products.
Keep premiums affordable as a fixed cost.
Read exclusion and waiting periods in the policy.

FAQ

Do I get money back at expiry?: Pure term usually returns little or nothing—check the product form.
Can I skip whole life entirely?: Yes if you only need a high temporary sum; add other tools for lifelong or savings goals.

Sources reviewed: 2026-11-06

References

Yaari, M. E. (1965). Uncertain lifetime, life insurance, and the theory of the consumer. Review of Economic Studies, 32(2), 137–150. Classic theory of life insurance under lifetime uncertainty.
Bernheim, B. D. (1991). How strong are bequest motives? Journal of Political Economy, 99(5), 899–927. Links bequest motives to life-insurance and saving choices.
Auerbach, A. J., & Kotlikoff, L. J. (1991). Life insurance of the elderly: Adequacy and determinants. In D. Wise (Ed.), Topics in the Economics of Aging. University of Chicago Press / related research. Assesses whether households hold adequate life cover.
보험업법. Legal framework for life-insurance products and solicitation.
생명보험협회. (n.d.). 정기보험·종신보험 비교 안내. Industry comparison of term vs whole-life features for consumers.
금융감독원. (n.d.). 생명보험 가입 유의사항. Supervisory tips on disclosure, cooling-off and surrender values.
Rothschild, M., & Stiglitz, J. E. (1976). Equilibrium in competitive insurance markets: An essay on the economics of imperfect information. Quarterly Journal of Economics, 90(4), 629–649. Adverse-selection theory behind underwriting and pricing.

Reports and materials that use this theory (Korean)

There are no materials dedicated to this theory yet, but you can search related reports in the CampusDown library (Korean).

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Whole Life InsuranceWhole life insurance pays a death benefit whenever you die, for a much higher premium than term. Learn its 18th-century roots, how it reached Korea in 1991, why early surrender values are low, regulators' warnings about selling it as savings, and what economists found about lapses.📈 Economics Indemnity Health Insurance in Korea (Silson)Silson is Korea's private indemnity health insurance that reimburses what you actually paid at clinics, including uncovered care. Covers its 1999 launch, the five product generations, co-pay rates, how to claim, moral hazard and adverse selection, and how to decide whether to switch.📈 Economics Insurance Planner (Korea)An insurance planner sells insurance on behalf of insurers or agencies and must be registered under Korea's Insurance Business Act. Covers the life/non-life planner exams, applying through a company, pay structure and cautions.💼 Business Social Security BenefitsHow U.S. Social Security works: work credits, full retirement age, claiming at 62 or 70, disability and SSI, the trust fund outlook, and Korea's pension.⚖️ Law Pension savings account (South Korea)How South Korea's private pension savings account works—why it was created, the 13.2–16.5% tax credit on up to ₩6 million a year, fund versus insurance versions, low pension tax after 55, and the penalty for early withdrawal. Think of it as Korea's IRA.📈 Economics Retirement Pension (Korea)Korea's retirement pension system (DB, DC, IRP) pre-funds benefits under the Employee Retirement Benefit Security Act. Compare plan types, links to severance pay and national pension, tax and early-withdrawal rules, and what to do when you change jobs.📈 Economics

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This article was last updated on November 6, 2026. It is based on widely recognized original works and textbooks; when citing it in a paper, please check the original sources listed in the references.