Final answer:
Term life insurance is the type of policy that needs to be renewed periodically and only provides coverage while the policyholder makes payments; it is the most economical option without a cash value.
Step-by-step explanation:
Term life insurance provides coverage for a specific term or period of time, such as 10 or 20 years. It does not accumulate cash value like whole life insurance or offer investment opportunities like universal or variable life insurance. Term life insurance is generally less expensive compared to other types of life insurance.
The type of life insurance that needs to be renewed periodically and only provides coverage while the policyholder is making payments is known as Term life insurance. This is the most economical option for pure life insurance protection, offering a death benefit for a specified 'term' — for example, 10, 20, or 30 years. Unlike Whole life insurance, Universal life insurance, and Variable life insurance, which all have an investment or savings component and typically don't expire as long as premiums are paid, term life policies have no cash value and expire at the end of the term unless renewed.