What is a key benefit of term life insurance?

Term life insurance is designed to provide coverage for a specified period, often at a lower cost compared to other types of life insurance. The key benefit of term life insurance is that it typically provides higher coverage amounts for a lower premium, making it an attractive option for individuals who want substantial coverage without committing to high costs. This affordability allows policyholders to secure a significant death benefit for their beneficiaries in the event of their passing during the term of the policy, which can be particularly important for those with financial dependents.

The other options do not align with the fundamental characteristics of term life insurance. While lifelong coverage with guaranteed payouts is a feature of permanent life insurance, term life policies are specifically limited to a certain time frame, and thus do not offer this guarantee. Conversion options may exist, but this is not a universal feature of all term policies. Unlike permanent life insurance, term policies do not accumulate cash value over time; any value associated with the policy only exists if it pays out a death benefit during the term. Hence, option C accurately captures the primary appeal of choosing term life insurance.