Define term life insurance.

Term life insurance is defined as a policy that provides coverage for a specified period of time. This type of insurance pays a death benefit to the beneficiaries if the insured passes away during the term of the policy, which typically ranges from one to thirty years. The focus of term life insurance is to provide financial protection for a set period, making it an appealing and affordable option for individuals seeking to ensure their loved ones are financially secure during critical years, such as while raising children or paying off a mortgage.

The correct definition emphasizes the temporal nature of the coverage, distinguishing it from permanent life insurance policies, which are designed to last for the entire life of the insured and often include a cash value component. In contrast, term life insurance does not accumulate cash value and is purely for protection during the specified term, making it a straightforward and economical choice for many consumers.