Which type of life insurance provides protection only for a specified period?

Term life insurance is a type of life insurance that offers coverage for a specific duration, which can range from one year to several decades. During this period, if the insured person passes away, a death benefit is paid to the beneficiaries. The main feature that distinguishes term life insurance is that it does not accumulate any cash value; it purely provides a death benefit as long as the policy is in force and premiums are paid.

This structure makes term life insurance a cost-effective option for those who need temporary coverage, such as young families or individuals with limited budgets who want to ensure financial protection in the event of an untimely death. It is particularly appealing for protection during significant financial responsibilities, like a mortgage or raising children, where the need for coverage is most pronounced but may not be necessary later in life.

In contrast, whole life insurance, universal life insurance, and variable life insurance are permanent policies that remain in effect for the insured's lifetime, provided premiums are paid. These policies often accumulate cash value over time and can serve as long-term financial planning tools, reflecting a different approach to life insurance coverage.