What characteristic is generally associated with term insurance?

Term insurance is specifically designed to provide coverage for a predetermined period, such as 10, 20, or 30 years. Its primary characteristic is that it does not accumulate cash value, which means policyholders only receive benefits if a claim arises within the coverage period. This lack of cash value accumulation differentiates term insurance from permanent life insurance products, which do build cash value over time and provide coverage for the policyholder’s entire life.

The focus on providing a death benefit for a specific term at lower premiums compared to permanent insurance products makes it an attractive option for those seeking affordable life insurance solutions without long-term investment components. Thus, the defining feature of coverage only for a specified period and the absence of cash value are what set term insurance apart from other insurance types.