What is a common feature of term life insurance?

Term life insurance is specifically designed to provide coverage for a predetermined period known as the "term." This can range from a few years to several decades. During this term, if the insured individual passes away, the policy pays out a death benefit to the beneficiaries. This feature is fundamental to term life insurance, making it distinctly different from other types of life insurance that may have investment components or cash value accumulation.

In other types of insurance, such as whole life or universal life, a cash value component is included, which allows the policyholder to build savings over time. However, term life insurance strictly does not have this feature, focusing solely on providing death benefit coverage for the set period without accumulating any cash value.

Similarly, term life insurance does not cover long-term care costs, which are typically addressed through separate long-term care insurance policies aimed at helping cover the expenses of ongoing care for chronic illnesses or disabilities.

Regarding premiums, term life insurance typically has lower premiums compared to permanent life insurance products. The lower cost can make it an appealing option for many people looking for affordable coverage for a specific time frame based on their needs, such as protecting their family's financial future during critical years like raising children or paying off a mortgage.