Which term describes a policy that provides coverage for a set period of time?

The term that describes a policy providing coverage for a set period of time is term insurance. This type of insurance is specifically designed to offer financial protection for a specified duration, such as 10, 20, or 30 years. If the insured individual passes away during that term, the beneficiaries receive the death benefit. If the term expires while the insured is still alive, the coverage ends with no payout.

Term insurance is straightforward and generally more affordable compared to other types of life insurance, such as whole or universal insurance. Whole insurance, for instance, provides coverage for the lifetime of the insured and includes a cash value component that grows over time. Similarly, universal insurance offers flexible premiums and also includes a cash value, but it is designed for the long term. Flexible insurance typically refers to policies that offer options for adjusting coverage and premiums but does not specifically imply a set time frame for coverage.

Thus, term insurance is the fitting choice for describing a policy that covers a defined period, effectively meeting the criteria specified in the question.