What is typically true about term life insurance policies?

Term life insurance policies are designed to provide coverage for a specified period, such as 10, 20, or 30 years, and do not accumulate cash value. This type of insurance is primarily focused on providing a death benefit to the beneficiaries if the insured passes away during the term. The absence of cash value accumulation is one of the distinguishing features of term life policies, making them generally more affordable compared to permanent life insurance policies, which do accumulate cash value and provide lifelong coverage.

Understanding that term life insurance is temporary in nature and lacks cash value helps consumers make informed choices about their life insurance needs, especially if they are looking for coverage primarily to protect their loved ones during critical years or until certain financial obligations are met.