What type of life insurance provides coverage for a specific period of time?

Term life insurance is specifically designed to provide coverage for a designated period, or term. This type of policy pays a death benefit only if the insured passes away within that specified time frame, which can range from a year to several decades. If the insured outlives the policy term, the coverage ends, and there is no payout.

In contrast, whole life insurance, universal life insurance, and variable life insurance are forms of permanent life insurance that do not have a defined term. These policies are intended to last throughout the insured's lifetime as long as premiums are paid. Whole life insurance builds cash value and offers a death benefit, while universal life and variable life insurance provide more flexibility in terms of premiums and investment options, but they all remain in effect for the lifetime of the insured, contrary to the time-limited nature of term life insurance.