Which of the following is a characteristic of term insurance?

Term insurance is designed primarily to provide a death benefit to beneficiaries if the insured dies during the specified term of the policy. This characteristic makes it distinct from other types of insurance, such as permanent insurance, which can accumulate cash value and also provide benefits beyond death, such as living benefits.

The primary focus of term insurance is coverage for a certain period, typically ranging from one year to several decades, with no cash value accumulation. This structure typically allows term insurance to be more affordable compared to permanent insurance, which helps people obtain substantial coverage for a lower monthly premium.

Understanding that term insurance provides benefits only in the event of death during the term of coverage is crucial. This specificity shapes most consumers' decisions when selecting the appropriate type of life insurance based on their financial needs and goals.