Which policy type typically lacks cash value but provides temporary coverage?

• A. Term life.
• B. Universal life.
• C. Variable life.
• D. Whole life.

Answer: (A)

Term life insurance provides temporary coverage and typically has no cash value. The death benefit is paid only if you die during the term, and once the term ends, the policy generally expires unless you renew or convert it. Because there’s no cash-value component built up over time, term life is the cheapest option for a finite need and does not accumulate savings inside the policy. In contrast, permanent policies such as whole life, universal life, and variable life include a cash-value component that grows over time and can be borrowed against or used later. So the policy type that typically lacks cash value and provides temporary coverage is term life.