What is the main feature of term life insurance?

Term life insurance is primarily characterized by its coverage for a specified period, which is typically chosen by the policyholder, such as 10, 20, or 30 years. During this term, if the insured passes away, the beneficiaries receive the death benefit, providing financial protection for those who depend on the insured's income. The focus of term life insurance is on pure protection rather than a savings or investment component, making it a cost-effective option for individuals who want to ensure financial support for their loved ones during a specific timeframe, such as while raising children or paying off a mortgage.

In contrast, whole life insurance provides coverage for the insured's entire lifetime, regardless of when they pass away, as long as premiums are paid. Options that build cash value or include investment components are characteristic of permanent life insurance products, which differ significantly from term life insurance. These permanent products often require higher premium payments and are designed for long-term financial planning and wealth accumulation, rather than strictly providing life coverage for a defined period.