Which of the following best defines a term insurance policy?

A term insurance policy is specifically designed to provide coverage for a designated period, or term, of time. This type of insurance is often associated with life insurance, where the policy pays a death benefit if the insured passes away within the specified term. If the insured survives the term, the coverage and benefits cease, and there is typically no cash value accumulated, which distinguishes it from whole life or universal life policies that do have cash value features.

The other options misrepresent the characteristics of term insurance. A policy that covers any type of risk does not accurately describe the limited and temporary nature of term insurance. A policy that has cash value points towards permanent life insurance forms, which are not the focus in term insurance. Additionally, stating that a policy is only for real estate inaccurately narrows down the scope of insurance types, as term insurance primarily relates to life rather than property coverage. Thus, the essence of term insurance — its fixed period of validity — is captured by the definition of a policy that lasts for a specific period.