What is typically a characteristic of term life insurance?

Term life insurance is primarily characterized by its affordability compared to permanent life insurance. This cost-effectiveness arises because term life insurance provides coverage for a specific period, or "term," without the additional investment component that permanent policies include. With no cash value accumulation, premiums for term policies are generally lower, making it a more budget-friendly option for those seeking life insurance protection for a limited period.

The other characteristics mentioned, such as providing savings benefits or covering a lifetime, do not apply to term life insurance. Permanent life insurance, as opposed to term, typically incorporates a savings or investment element that builds cash value and lasts a lifetime. Term policies, however, are designed solely to provide death benefit protection for a specified time, and they may also be renewable but do not automatically convert into permanent policies. Therefore, the lower premiums of term life insurance and its specific focus on providing protection without the cash value aspect strongly support the idea that it is usually cheaper than permanent insurance.