What describes a Term-Life insurance policy?

A Term-Life insurance policy is designed to provide coverage for a specific period, often referred to as the "term," which can vary in length (e.g., 10, 20, or 30 years). This type of insurance is typically more affordable than permanent life insurance policies because it does not build cash value and only pays a death benefit if the insured passes away within the term. If the policyholder survives the term, the coverage expires without paying a benefit.

This structure makes Term-Life insurance an attractive option for individuals seeking affordable coverage to protect their dependents during significant financial commitments, such as raising children or paying off a mortgage, while providing a safety net for a defined period. It is a straightforward approach to life insurance focusing purely on providing financial protection during the specified term, without investment components that increase costs.