Which type of life insurance provides coverage for a specific period?

Term life insurance provides coverage for a specific period, also known as a term. This type of insurance is designed to offer a death benefit if the insured person passes away during the term of the policy, which is usually set for a duration such as 10, 20, or 30 years. If the insured survives the term, the coverage ends, and there is no payout, making it a more affordable option compared to permanent life insurance policies.

Whole life insurance, on the other hand, offers coverage for the entire lifetime of the insured as long as premiums are paid, creating a cash value that grows over time. Universal life insurance is similar in that it also provides lifelong coverage and features a cash value component, allowing policyholders some flexible premium payment options. Group life insurance is typically offered by employers and provides coverage to many individuals under a single policy, but it also doesn’t have a fixed term like term life insurance does.