Which type of insurance offers benefits only if the insured event occurs within a specified time frame?

Term life insurance is designed to provide coverage for a specific period, which can range from a few years to several decades. It pays out a death benefit only if the insured passes away during that set timeframe. This feature distinguishes it from other types of life insurance, which are typically structured to provide lifetime coverage or build cash value over time.

Permanent life insurance options, such as whole life and universal life insurance, remain in effect for the insured's entire lifetime, assuming premiums are paid. They also accumulate cash value, which the insured can access while they are alive. Consequently, there is no specified time frame tied to the benefits of these policies, as they are guaranteed despite the occurrence of the insured event relative to a time limit.

Term life insurance is often more affordable than permanent insurance options because it does not build cash value and is only intended to provide a safety net against the financial impact of loss during the designated term. Thus, the key characteristic of term life insurance is that the benefits are strictly contingent upon the occurrence of the insured event within the defined period, making it the correct answer to the question.