Which type of life insurance pays a benefit only if death occurs during a specified period?

Term life insurance is designed specifically to provide a death benefit only if the insured individual passes away within a specified time period, known as the term. This term can vary, typically ranging from one to thirty years. If the insured survives beyond this period, the policy expires without any payout. This characteristic makes term life insurance a straightforward and often more affordable option compared to other types of life insurance, which may have cash value components or cover the insured for their entire lifetime.

In contrast, whole life insurance provides coverage for the entire lifetime of the insured, as long as premiums are paid, and it also accumulates cash value over time. Endowment insurance combines features of both term and whole life insurance, paying out a benefit either upon death within the specified period or if the insured reaches a certain age. Universal life insurance offers flexible premium payments and adjustable death benefits, but it remains a lifetime policy. Thus, term life insurance is distinct in its provision of benefits limited to a designated period.