Which type of life insurance is typically designed to provide coverage for a specific period?

Term life insurance is specifically structured to provide coverage for a predetermined period, often ranging from one to thirty years. This type of insurance is designed to pay a death benefit to the beneficiary if the insured passes away during the specified term. The simplicity and cost-effectiveness of term life insurance make it a popular choice for individuals seeking financial protection for a limited period, such as while raising children or paying off a mortgage.

In contrast, whole life insurance and universal life insurance are forms of permanent insurance that offer coverage for the insured's entire lifetime, as long as premiums are paid. These policies also accumulate cash value over time, which is a feature not found in term life insurance. Variable life insurance is another type of permanent policy that allows policyholders to allocate their cash value into various investment options, but it does not focus on a specific term for coverage either. Thus, the defining characteristic of term life insurance is its limited duration of coverage, distinguishing it from other types of life insurance.