Term life insurance is best defined as?

Term life insurance is defined as providing protection for only a limited time. This type of insurance is designed to cover the policyholder for a specific period, such as 10, 20, or 30 years. If the insured individual passes away during this term, the beneficiaries receive a death benefit. However, if the term expires and the insured is still alive, the coverage ends, and there is no payout or cash value accrued.

The primary characteristic of term life insurance is its simplicity and focus on providing death benefits without any cash value component or lifelong commitments, making it more affordable compared to permanent life insurance options. Therefore, it is well-suited for individuals seeking financial protection for a specific duration, such as to cover dependents during their working years or align with a mortgage term.