Term life insurance typically provides coverage for what duration?

Term life insurance is designed to provide coverage for a specific period, typically in durations of 10, 20, or 30 years. This type of insurance policy ensures that if the insured passes away within the specified term, the beneficiaries receive the death benefit. The structure of term life makes it more affordable compared to permanent life insurance options, which provide coverage for the entirety of the insured's life.

The typical options of 10, 20, or 30 years align with common financial planning timelines, such as covering young dependents, mortgage terms, or ensuring funds for specific goals or debts. By choosing a term length that matches their life stage or financial needs, individuals can purchase sufficient protection during times when financial responsibilities are higher.

The other answer choices do not accurately reflect the standard terms of term life insurance. Five years is not commonly offered as a standard term. Coverage durations of 20 to 40 years extend beyond typical offerings, and "indefinitely" describes the nature of permanent life insurance rather than term policies, which provide coverage for a defined period only.