What is the main characteristic of term life insurance?

Term life insurance is primarily characterized by its provision of coverage for a specific period, as indicated in the correct answer. This type of insurance is designed to be in effect for a predetermined duration, which can range from a few years to several decades, depending on the policy. During this designated term, if the insured individual passes away, the beneficiaries receive a death benefit. If the term expires while the insured is still alive, the coverage simply ceases, and no benefits are paid out.

This feature differentiates term life insurance from other types, such as whole or universal life insurance, which build cash value over time. Additionally, term life insurance is often more affordable than permanent policies, contradicting the notion that it is the most expensive. While some term policies may require a medical examination, it is not universally necessary for all term life insurance products. Thus, the defining characteristic of this type of policy is indeed its coverage for a specified period.