Which type of life insurance provides coverage for a specific period and has no cash value?

Term life insurance is designed to provide coverage for a specific period, such as 10, 20, or 30 years. During this time, if the insured individual passes away, the policy pays a death benefit to the beneficiaries. One of the defining characteristics of term life insurance is that it does not accumulate cash value like permanent life insurance products, such as whole life, universal life, or variable life.

The absence of cash value means that once the term expires, the policyholder does not receive any payout or surrender value, and coverage ends unless it is renewed or converted to another type of policy. This structure makes term life insurance more affordable, as premiums are typically lower compared to those of permanent policies that include a cash value component. Therefore, for individuals looking for coverage that is straightforward and focused solely on providing financial protection for a specified timeframe, term life insurance is the appropriate choice.