What type of life insurance is often used to provide temporary coverage?

Term life insurance is designed specifically to offer coverage for a limited period, making it a suitable option for those seeking temporary protection. Policyholders typically purchase term life insurance for specific durations, such as 10, 20, or 30 years, depending on their individual needs and financial circumstances.

The primary function of term life insurance is to provide a death benefit to the beneficiaries if the insured individual passes away within the policy term. This type of insurance is often chosen by people who need coverage for a specific time frame, such as while raising children or paying off a mortgage, and it is generally more affordable than permanent life insurance due to its temporary nature and lack of a cash value component.

In contrast, permanent life insurance provides lifelong coverage and often includes a cash value component that can be borrowed against or withdrawn from, making it unsuitable for temporary needs. Universal life and endowment policies also offer features that align more with long-term coverage and investment components, rather than the temporary focus of term life insurance.