What type of life insurance provides coverage for a specified period of time?

Term life insurance is designed to provide coverage for a specified period of time, such as 10, 20, or 30 years. This type of policy pays a death benefit to the beneficiary if the insured passes away during the term of the policy. If the insured outlives the term, the coverage simply ends without any value or payment.

This feature distinguishes term life insurance from other types of policies, such as whole life, which offers coverage for the insured's entire lifetime and includes a savings component that accumulates cash value. Universal life also provides lifetime coverage but with flexible premiums and a cash value component. Variable life insurance features investment options within the policy, allowing the policyholder to invest the cash value in various portfolios. Hence, term life is specifically structured for those who need temporary coverage for a defined time frame.