Explain 'term life insurance'.

Term life insurance is a type of life insurance that offers coverage for a specified period, known as the "term." This term can vary, typically lasting anywhere from one year to thirty years. During this duration, the insured pays premiums, and if they pass away, the policy pays a death benefit to the beneficiaries.

The key characteristics of term life insurance include its temporary nature and the fact that it does not accumulate any cash value over time. If the insured survives the term, the policy simply expires without any payout or accumulated savings. This structure provides affordable protection for individuals who seek coverage for a specific period, such as until their children are grown or until a mortgage is paid off.

In contrast to other types of life insurance, such as whole life or universal life, which provide lifetime coverage and often include a savings or investment component, term life strictly serves to provide financial security for a limited timeframe, making it a practical choice for many individuals seeking cost-effective coverage without the long-term commitment or investment features.