Which policy is likely to provide a payout only if the insured dies before a set term?

The policy that is designed to provide a payout only if the insured dies before a specified term is term life insurance. This type of insurance offers coverage for a predetermined period, such as 10, 20, or 30 years. If the insured passes away during this term, the beneficiaries receive the death benefit. However, if the insured survives the term, there is no payout, and the coverage typically ends.

Term life insurance is often more affordable than permanent policies, making it a popular choice for individuals looking to secure financial protection for their families during key periods, such as raising children or paying off a mortgage. In contrast, other types of life insurance policies, such as whole life, universal life, and variable life, provide coverage for the insured's entire lifetime and often include a cash value component that accumulates over time, regardless of when the insured passes away.