Endowment life insurance and term life insurance both offer what common feature?

Endowment life insurance and term life insurance share the feature of providing life insurance protection solely for the duration stipulated in the policy. This means that both types of insurance are designed to pay a benefit only if the insured passes away during the policy term or, in the case of endowment policies, potentially at the end of a specified period.

Term life insurance offers pure death benefit coverage for a specific period, such as 10, 20, or 30 years, and pays out only if the insured dies during that term. Endowment insurance, while also offering life coverage, additionally provides a maturity benefit if the insured survives to the end of the policy term. However, irrespective of their differences, both products strictly limit the period during which the benefits apply based on the policy's terms.

This articulates the basis of why these two types of insurance share a commonality in offering life insurance protection that is only effective for the time frame set forth in the contract. Other options, such as guaranteed benefits payable at a certain age, investment growth opportunities, or tax-free withdrawals, do not represent features common to both endowment and term policies.