What type of life insurance provides coverage for a specified period and expires at the end of that period?

Term insurance is designed to provide coverage for a specified period, such as 10, 20, or even 30 years. If the policyholder passes away during this term, the beneficiaries receive the death benefit. However, if the term expires and the insured is still alive, no benefit is paid out, and the coverage ends. This type of insurance is generally more affordable than permanent policies, such as whole or universal life insurance, because it does not build cash value and only provides a pure death benefit for the duration of the term.

Whole life insurance and universal life insurance, on the other hand, provide lifelong coverage and also accumulate cash value over time, which adds an investment component to the policy. Endowment policies are intended to pay a benefit after a specific period or upon death, typically combining elements of both term and whole life but are structured differently and are less common than standard term policies.