What is a key feature of term life insurance?

Term life insurance is designed to provide coverage for a specific period, typically ranging from one to thirty years. The key feature of this type of insurance is that it offers pure insurance coverage without incorporating a cash value component. This means that if the insured passes away during the term, the beneficiaries will receive the death benefit, but if the term ends and the insured is still alive, the coverage ceases, and no cash value is returned.

In contrast, options that suggest indefinite coverage or cash value accumulation do not apply to term life insurance. Permanent life insurance, for instance, can provide coverage for the insured's lifetime and typically accumulates cash value over time. Additionally, while premium payments for term life insurance can sometimes increase at renewal, they do not fluctuate annually in the same manner as some other insurance products might.

Overall, the essence of term life insurance lies in its straightforward nature—delivering a death benefit with no investment component or cash value accumulation.