Which of the following is an example of pure insurance?

Term life insurance is considered an example of pure insurance because it provides coverage for a specified period without any cash value accumulation or savings component. The primary purpose of term life insurance is to offer a death benefit to the policyholder’s beneficiaries if they pass away during the term of the policy. This type of insurance is straightforward and efficient, focusing solely on protecting the insured against the financial consequences of death for a limited time.

Whole life insurance and universal life insurance, on the other hand, include an investment or savings component that builds cash value over time. This means they provide both a death benefit and an accumulation of cash value, making them more than just pure insurance. Endowment insurance also combines life coverage with a savings aspect, as it pays a benefit either at the end of a specified period or upon the death of the insured, which again incorporates elements beyond pure insurance. Thus, term life insurance stands out as the pure risk management tool, as it purely addresses the risk of death without any additional savings feature.