What is a key feature of term life insurance?

Term life insurance is specifically designed to provide coverage for a specified period, such as 10, 20, or 30 years. This means that the insurance pays a death benefit to beneficiaries if the insured individual passes away during that term. If the insured outlives the term, the coverage ends, and there is typically no payout or cash value accumulated. This feature aligns with the notion of temporary coverage rather than lifelong benefits, which is a fundamental characteristic of term life insurance.

In contrast, other types of life insurance, such as whole life or universal life, are known for offering lifelong coverage and accumulate cash value over time. Term life insurance does not have these features, as it is not intended to serve beyond the specified term. Additionally, the idea of no premium payments does not hold true in the context of term life insurance, as premiums are required to maintain the coverage throughout the selected term.