Which type of insurance policy provides coverage for a specified term only?

Term life insurance is specifically designed to provide coverage for a predetermined period, such as 10, 20, or 30 years. During this term, if the insured individual passes away, the policy pays a death benefit to the beneficiaries. If the individual outlives the term, the policy expires, and no benefit is paid out.

This type of insurance contrasts significantly with whole life, variable life, and universal life insurance policies, which are designed to remain in force for the insured’s entire lifetime, as long as premiums are paid, or they combine protection with a savings or investment component. Such features make term life a straightforward and often more affordable option for individuals looking for temporary coverage. It’s particularly appealing to those who need coverage during specific periods of financial dependence, such as when they have young children or mortgages.