What does term life insurance provide?

Term life insurance provides coverage for a specific period of time, which is a fundamental characteristic of this type of policy. This coverage typically lasts for set terms such as 10, 20, or 30 years, and if the insured passes away during this time, the beneficiary receives the death benefit. The primary purpose of term life insurance is to offer financial protection for a temporary duration, which is particularly useful for individuals who want coverage during critical life stages, such as raising children or paying off a mortgage.

In contrast, whole life or permanent life insurance offers coverage for the insured's entire life, and involves a cash value component that builds over time, providing both protection and an investment element. Therefore, the defining feature of term life insurance is that its coverage is limited to a predetermined period, making option B the correct response.