What is a notable feature of a term life insurance policy?

A notable feature of a term life insurance policy is that it is designed for temporary coverage with no cash value. This type of insurance provides a death benefit for a specified term, such as 10, 20, or 30 years. If the insured person passes away during this term, the beneficiary receives the payout. However, if the term expires and the person is still living, the coverage ends, and there is no cash value that accumulates over the life of the policy. This distinguishes term life from permanent life insurance policies, which do build cash value over time and can be utilized during the policyholder's lifetime. Term life is generally less expensive than other forms of life insurance, making it a preferred option for those seeking affordable temporary coverage without the financial benefits associated with cash value accumulation.