What type of insurance provides coverage for a specific period?

Term life insurance is designed to provide coverage for a specified period, which can range from one year to several decades. This type of insurance is particularly appealing for individuals who need coverage for a temporary need, such as raising children or paying off a mortgage. If the insured person passes away during the term of the policy, the beneficiaries receive the death benefit. However, if the term expires and the insured is still alive, the coverage ends, and there is typically no benefit paid out.

In contrast to term life insurance, whole life insurance offers coverage for the insured's entire lifetime, as long as premiums are paid. Universal life insurance also provides lifetime coverage, combining an investment savings element with a flexible premium. Convertible life insurance refers to a policy that can be converted from term to whole or universal life insurance but does not itself define a specific period of coverage. Therefore, the distinct characteristic of term life insurance is that it is specifically limited to a defined duration, which is why it is the correct answer.