An insurance policy that provides coverage for a limited time is known as what type of policy?

A term policy is specifically designed to provide life insurance coverage for a predetermined and limited period, such as 10, 20, or 30 years. During this term, if the insured passes away, the beneficiaries receive the death benefit, but if the insured survives the term, the coverage expires without any payout. This type of policy is popular for individuals seeking affordable coverage for specific time frames, such as while raising children or paying off a mortgage.

In contrast, whole life policies, universal life policies, and variable life policies offer lifelong coverage and typically also contain cash value components that can grow over time. Whole life policies provide a guaranteed death benefit and cash value accumulation, while universal life policies offer flexible premiums and death benefits. Variable life policies allow policyholders to invest the cash value in various investment options, which can affect the overall death benefit and cash value based on market performance. None of these types offer the limited time coverage, making the term policy the correct choice for this question.