What is typically true about term life insurance policies?

Term life insurance policies are characterized by their provision of coverage for a specific period of time, which is often referred to as the "term." This period can range from a few years to several decades, depending on the policyholder's needs and preferences. The policy is designed to provide a death benefit to the beneficiaries if the insured passes away during this specified term.

The nature of term life insurance makes it an attractive option for individuals seeking temporary coverage, such as for protecting a mortgage or providing for dependents until they are financially stable. Unlike whole life insurance, term policies do not accumulate cash value and do not guarantee lifelong coverage; they only remain in force as long as premiums are paid and within the specified coverage period. As a result, they typically offer lower premiums than whole life insurance, aligning with the primary focus of providing protection without the additional investment component that whole life includes.