What is the primary purpose of a term life insurance policy?

The primary purpose of a term life insurance policy is to provide coverage for a specific period. Term life insurance is designed to protect the insured's beneficiaries financially for a designated timeframe, such as 10, 20, or 30 years. If the insured passes away during this term, the policy pays out a death benefit to the beneficiaries. This type of insurance is often more affordable than whole life policies because it does not include an investment component or accumulate cash value; its sole focus is to offer pure protection during the specified term.

Options discussing lifelong coverage or cash value accumulation do not apply to term life insurance, as these features are characteristic of whole life or permanent insurance products. Similarly, term life insurance is not designed primarily as a retirement strategy but rather as a straightforward way to provide financial security for dependents or cover specific financial obligations within a defined term.