Which of the following best describes term life insurance?

Term life insurance is fundamentally characterized by the provision of coverage for a specified term only. This means that the insurance policy is active for a designated number of years, such as 10, 20, or even 30 years, and if the insured person passes away during that term, the designated beneficiaries receive a death benefit. If the term expires and the insured is still alive, the coverage ends without any value generated at that point.

In contrast to options like generating cash value, which is typical of permanent life insurance products, term life insurance strictly offers protection without any investment component. Additionally, term life does not carry an expiration date in the sense of lasting indefinitely, nor is it limited to a senior demographic; it is available to individuals at various ages depending on the policy terms.