What type of insurance provides income to beneficiaries for a specified term after the policyholder's death?

Term life insurance is designed to provide a death benefit to the beneficiaries if the policyholder passes away during a specified term, which can range from a few years to several decades. This type of insurance does not accumulate cash value like whole life or universal life insurance; instead, it focuses solely on providing financial protection for the beneficiaries in the event of the policyholder’s death.

The policy remains in force for the duration of the term as long as premiums are paid, and if the insured dies within this period, the specified death benefit is paid out. Because term life insurance is often more affordable compared to permanent policies, it is commonly used to cover temporary financial responsibilities, such as mortgage payments, education costs, or income replacement during critical years.

In contrast, whole life, universal life, and variable life insurance are permanent insurance options. They focus on providing lifelong coverage and often include a savings or investment component. While they also provide death benefits, they do not operate on a specified term, which is the distinguishing characteristic of term life insurance.