What distinguishes term life insurance from permanent life insurance?

Term life insurance is specifically designed to provide coverage for a predetermined period, such as 10, 20, or 30 years. This type of policy pays a death benefit if the insured passes away during that time frame. If the insured survives beyond the term, the coverage ends, and there is no payout or cash value accumulation.

This characteristic stands in contrast to permanent life insurance, which offers lifelong coverage and typically includes a cash value component that accumulates over time. The temporary nature of term life insurance is its defining feature, making it an ideal choice for individuals seeking affordable coverage for a specific duration, such as while raising children or paying off a mortgage.