Which of the following best describes Term Assurance?

Term Assurance is best described as a policy that covers you for a fixed term. This means that the coverage is in place for a specified period, which can vary according to the terms established at the policy's inception. If the insured individual passes away during this term, the beneficiaries receive a death benefit. If they survive the term, the policy generally expires without any payout.

This type of assurance does not accumulate cash value over time, which distinguishes it from whole life policies or other products that do build a savings component. Additionally, term assurance is not designed to provide lifelong coverage; it is strictly for the duration of the specified term. The focus is on providing protection during the period when the insured may need it the most, such as while raising children or paying off a mortgage.

Overall, the fundamental feature of Term Assurance as a fixed-term policy underlines its purpose and mechanism in the realm of life insurance.