What type of insurance provides coverage for a specified period of time?

Term insurance is designed to provide coverage for a specified period of time, such as 10, 20, or 30 years. This type of insurance is particularly appealing because it allows individuals to obtain a larger amount of coverage at a lower cost compared to permanent insurance policies. It is ideal for those looking to protect their families or dependents during critical financial periods, such as raising children or paying off a mortgage, without the long-term financial commitment of whole or universal life insurance.

In term insurance, if the insured passes away during the term, the beneficiaries receive the death benefit. However, if the term expires and the insured is still alive, the coverage ends, and there is no payout or cash value accumulated. This creates a clear distinction from the other types of life insurance, which typically offer lifelong coverage and may also accumulate cash value over time.