Term insurance typically does NOT provide which of the following?

Term insurance is designed to provide coverage for a specified period, making it a popular choice for those seeking affordable life insurance purely for the death benefit protection it offers. One of the defining characteristics of term insurance is that it does not accumulate cash value over time. This is in contrast to whole life or universal life policies, which include a savings component that builds cash value as premiums are paid.

Cash value in life insurance policies serves as an investment element, allowing policyholders to borrow against it or withdraw funds, which is not a feature of term insurance. Instead, term insurance focuses solely on providing a death benefit, ensuring that if the insured passes away during the term of the policy, the designated beneficiaries receive the payout.

While term insurance does provide death benefits, final expense coverage, and is indeed temporary in nature (lasting for the duration of the term), it is the absence of cash value accumulation that distinctly sets it apart from other types of life insurance.