What can be a drawback of term life insurance compared to whole life insurance?

The correct answer highlights a significant characteristic of term life insurance: it provides temporary coverage. Term life insurance is designed to cover the insured for a specified period, such as 10, 20, or 30 years. If the insured passes away within this term, the death benefit is paid to the beneficiaries. However, once the term expires, the coverage ends, and there is no payout if the insured is still alive. This inherent temporary nature can be seen as a drawback when compared to whole life insurance, which offers lifelong coverage as long as premiums are paid.

Whole life insurance, on the other hand, does not have a predetermined duration and will pay a death benefit regardless of when the insured dies, as long as the policy remains in force. Additionally, whole life policies often accumulate cash value over time, providing more financial options for the policyholder during their lifetime.

This distinction reinforces the idea that while term life insurance is generally more affordable and straightforward, its limitation of being temporary coverage can be a significant drawback for individuals seeking lifelong protection for their loved ones.