What is one major feature of term life insurance?

One major feature of term life insurance is that it pays a death benefit only if the insured dies within a specified term. This type of insurance is designed to provide coverage for a predetermined period, such as 10, 20, or 30 years. If the insured passes away during this time frame, the beneficiaries receive the death benefit. If the term expires and the insured is still alive, typically, no benefit is paid out, and the policy simply lapses unless there are options to convert it to a permanent policy or renew it.

This distinctive characteristic of providing temporary coverage at a lower cost compared to whole life insurance makes term life appealing for those who need financial protection for specific periods, such as while raising children or paying off a mortgage.