Which type of life insurance provides coverage for a specific period of time?

Term life insurance is designed to provide coverage for a specific period of time, typically ranging from one year to 30 years. This type of policy is particularly appealing to individuals who seek life insurance protection only while they are most vulnerable, such as while raising children or paying off a mortgage.

What makes term life insurance distinct is its temporary nature; it does not build cash value or provide lifetime coverage. If the insured dies during the term of the policy, the beneficiaries receive a death benefit; however, if the term expires and the insured is still alive, the coverage ends, and no benefit is paid.

In contrast, other types of life insurance, like whole life and universal life, offer lifelong coverage and may accumulate cash value. Variable life insurance also provides permanent coverage but allows policyholders to invest the cash value in various investment options, adding a layer of complexity that is not present in term life insurance. Therefore, the primary characteristic of term life insurance is its defined duration of coverage, making it the right answer for this question.