What does a term life insurance policy provide?

A term life insurance policy is designed to provide coverage for a specific period of time, which can range from a few years to several decades. The key feature of term life insurance is that it pays a death benefit to the beneficiary if the insured passes away during the policy term. If the insured outlives the term, the policy typically does not provide any benefits, and there is no cash value component.

This type of insurance is often selected for its affordability compared to whole life or other types of permanent insurance, making it a practical choice for individuals seeking temporary coverage, such as during their working years or while raising children. The focus on providing financial protection for a specific period aligns with its purpose, which is to secure coverage when it's most needed without the additional costs associated with cash value accumulation or investment components.