What is a common characteristic of term assurance policies?

Term assurance policies are designed to provide coverage for a specific period, known as a term. This fixed duration is a defining feature of such policies, differentiating them from other types of life insurance. Typically, term assurance might be set for a range of periods, such as 10, 20, or 30 years, making it suitable for individuals who want life coverage during essential financial responsibilities, like raising children or paying off a mortgage.

While some policies may offer conversion options to permanent insurance, the fundamental characteristic remains that term assurance is effective only during the specified term. After the term expires, if the policyholder has not passed away, the coverage ceases, and no benefits are paid out. This is distinct from whole life or permanent insurance policies, which provide coverage for the insured's lifetime.

The other options presented do not apply to term assurance. For example, term assurance does not include investment components, which are typically found in permanent life insurance. Similarly, lifelong coverage is exclusive to permanent policies. Although medical exams may be required in some cases, they are not a universal requirement for all applicants of term insurance.