Which of the following is a feature of endowment and term life policies?

Endowment and term life policies share a feature of providing limited insurance protection for a specific period. In the case of term life insurance, the policy is designed to provide coverage for a set term, typically ranging from one to thirty years. If the insured passes away during that term, the beneficiaries receive a death benefit. Once the term expires, the coverage ends unless renewed.

Endowment policies, on the other hand, combine life insurance with a savings component, offering not just coverage but also a payout if the insured survives until the end of the policy term. However, like term policies, they provide a defined coverage period. The specificity of coverage duration is a critical feature of these products, differentiating them from whole life policies, which offer lifelong protection.

Other options don't align with the fundamental characteristics of endowment and term policies. For instance, guaranteed cash value accumulation typically applies to whole life or permanent policies where the policy builds cash value over time. Similarly, universal life policies are known for their flexible premium payments, which is not a feature of standard term or endowment policies. Lastly, dividend payments are associated with participating whole life policies, not with term or endowment policies, which generally do not pay dividends.