What type of insurance provides the death benefit only upon death without an accumulating cash value?

Term life insurance is designed to offer a straightforward death benefit to the beneficiaries in the event of the policyholder's death during the policy term. It is a pure form of insurance where premiums are paid for the coverage for a set period, such as 10, 20, or 30 years. If the insured passes away during the term, the insurance company pays out the agreed-upon death benefit. However, if the insured survives the term, there is no payout, and the policy typically terminates without any value.

Unlike whole life, universal life, and variable life insurance, term life does not accumulate cash value or provide any benefits other than the death benefit. Whole life insurance includes a savings component that builds cash value over time. Similarly, universal and variable life insurance also incorporate cash value mechanisms, with universal life allowing for flexible premium payments and investment options, while variable life insurance links the cash value component to investment performance. This distinction makes term life insurance uniquely suited for individuals seeking affordable death coverage without the complexities of cash value accumulation.