What feature is generally associated with term life insurance policies?

Term life insurance policies are characterized primarily by their provision of temporary coverage. This means that the policy is effective for a specified period, which can typically range from one year to several decades, as chosen by the policyholder. If the insured individual passes away during the term, the death benefit is paid to the beneficiaries. However, if the individual outlives the term, the coverage expires without any benefit payable.

In contrast, other features associated with different types of life insurance policies contribute to the distinction. Permanent coverage, for instance, is a characteristic of whole and universal life insurance, which offer lifelong coverage as long as premiums are paid. Level premiums for life also pertain to permanent policies where the premium amount remains constant throughout the life of the policy. Guaranteed cash value is another feature associated with permanent life insurance plans, allowing the policy to build cash value over time that can be borrowed against or withdrawn.

Thus, the unique aspect of term life insurance is that it is structured to provide coverage for a limited duration, aligning directly with the concept of temporary coverage.