What type of life insurance policy did Mrs. Jennings purchase?

Mrs. Jennings purchased a term life insurance policy. Term life insurance is designed to provide coverage for a specific period of time, typically ranging from one to thirty years, with the primary objective of offering a death benefit to beneficiaries if the insured passes away during that term. This type of policy is often more affordable than permanent policies, making it an attractive option for individuals who want to secure financial protection for their dependents for a limited time, such as during the years they are raising children or paying off a mortgage.

In contrast, whole life and universal life policies fall under the category of permanent life insurance, which provides lifelong coverage and typically includes a savings component that accumulates cash value over time. These options often come with higher premiums and are designed for individuals seeking a combination of death benefit and investment growth. Understanding the specifics of each type of policy, including the duration of coverage and cost implications, helps clarify why Mrs. Jennings’s choice is characterized as a term life insurance policy.