The type of life insurance that starts out as temporary and provides coverage for a specific period is known as term life insurance. Term life insurance is designed to offer financial protection for a specified term or duration, typically ranging from 10 to 30 years. During this period, if the policyholder passes away, the death benefit is paid out to the beneficiaries tax-free.

One of the key advantages of term life insurance is its affordability compared to permanent life insurance options. Since it doesn't accumulate cash value and has a specific term, term life insurance tends to have lower premiums, making it an attractive option for individuals who primarily seek coverage for a certain period, such as until their children are financially independent or until a mortgage is paid off.

It's important to note that, unlike permanent life insurance policies like whole life or universal life, term life insurance does not build cash value, and coverage ends when the term expires. Policyholders have the option to renew their term policy, often at a higher premium, or convert it to a permanent policy if their needs change over time. Term life insurance is a popular choice for those looking for straightforward and cost-effective coverage during specific life stages.

Life insurance claims can be denied for several reasons, adding complexity and frustration to an already challenging situation. One significant factor is the policyholder's failure to adhere to the terms of the policy, such as missed premium payments leading to a policy lapse. Additionally, if the cause of death falls under specific exclusions outlined in the policy, such as death resulting from participating in hazardous activities not disclosed during the application process, the claim may be denied.

Misrepresentation or fraud on the policy application, including providing false information about health, lifestyle, or medical history, is another common reason for claim rejection.

Moreover, if the policyholder dies during the initial contestability period, typically the first two years of coverage, the insurance company may intensively scrutinize the circumstances surrounding the death, and the claim might be denied if any discrepancies are found. Understanding and complying with the policy terms and conditions can help policyholders and beneficiaries avoid claim denials and ensure a smoother claims process in the unfortunate event of a loved one's passing.