What is a common characteristic of term life insurance?

Term life insurance is designed to provide coverage for a specific period, commonly referred to as the "term." This term can range from as short as one year to as long as 30 years or more. The policy pays a death benefit to the beneficiaries if the insured dies during that specified term. If the insured outlives the term, coverage ends, and there is no payout or cash value accrued at that point. This characteristic distinguishes term life insurance from permanent life insurance policies, which typically provide lifelong coverage and often build cash value. The temporary nature of term life insurance makes it a suitable option for those who need coverage for a set period, such as while raising children or paying off a mortgage.