Which type of life insurance provides coverage for a specific period and does not accumulate cash value?

Term life insurance is designed to provide coverage for a predetermined period, such as 10, 20, or 30 years. This type of policy is straightforward: if the insured individual passes away during the term, the beneficiary receives a death benefit. However, if the individual survives the term, there is no payout, and the policy simply expires.

A key feature of term life insurance is that it does not accumulate any cash value during its term. Instead, it focuses solely on providing a death benefit during the specified timeframe. This differentiates it from whole life insurance, universal life insurance, and variable life insurance, all of which include some form of cash value accumulation over time. Thus, if a consumer's primary need is for temporary coverage without the component of savings or investment, term life insurance is the appropriate choice.