Which type of life insurance policy provides coverage for a specified term and pays no benefits if the insured dies after that term?

Term life insurance is designed to provide coverage for a specified period, often ranging from one to thirty years. If the insured passes away during this term, the policy pays a death benefit to the beneficiaries. However, if the insured outlives the term of the policy, no benefits are paid out, and the coverage simply ends. This type of insurance is typically used to cover specific financial obligations, such as a mortgage or children's education, during a set time frame when the need for coverage is perceived as higher.

In contrast, whole life, universal life, and variable life insurance policies provide lifelong coverage and include a cash value component, which can accumulate over time. These policies typically do not expire as long as premiums are paid, ensuring that beneficiaries receive benefits regardless of when the insured passes away, assuming the policy remains in force. Understanding this difference is crucial when considering the best type of life insurance for specific needs and circumstances.