What is a distinguishing feature of term life insurance compared to permanent life insurance?

Term life insurance is specifically designed to provide coverage for a specified period, such as 10, 20, or 30 years, making it a temporary form of insurance. This means that if the insured individual passes away during the term of the policy, the beneficiary receives the death benefit; however, if the term expires and the insured is still alive, no benefit is paid out, and the coverage ends unless renewed or converted to another type of policy.

In contrast, permanent life insurance, such as whole or universal life insurance, is intended to provide coverage for the insured's entire lifetime, as long as the premiums are paid. Additionally, permanent policies typically build cash value over time and may offer dividends, features that are not present in term life insurance. Therefore, the key distinguishing feature of term life insurance is indeed that it provides temporary coverage rather than lifelong coverage, cash value, or dividends.