What does term life insurance cover?

Term life insurance is designed to provide coverage for a specific period of time, known as the "term." This can range from a few years to several decades, depending on the policy. During this term, if the insured passes away, the beneficiary receives a death benefit. Because term life insurance is focused on providing financial protection during a limited timeframe—often aligned with the insured's financial obligations such as a mortgage or children’s education—it does not accumulate cash value or provide coverage beyond the set term.

The other options describe features that are not associated with term life insurance. Permanent coverage, such as whole life or universal life insurance, offers lifelong protection and builds cash value, which is distinct from the time-bound nature of term insurance. Coverage for permanent disability and critical illness is typically provided by supplemental policies or riders, but is not part of a standard term life policy. Thus, the specific definition of term life insurance aligns with its coverage for a designated period, making it the correct answer.