Which type of insurance policy typically does not offer dividends?

A term life policy is a type of insurance that provides coverage for a specified period, usually ranging from one to thirty years. The defining characteristic of term life is that it does not build cash value or offer dividends. Term policies are often considered "pure" insurance; they pay a death benefit if the insured passes away during the term but do not have any investment component or profit-sharing features that would allow for dividends.

On the other hand, participating policies, such as some whole life policies, are designed to share profits from the insurer with policyholders in the form of dividends. Universal life policies can also offer this option depending on the specific product, as they often combine term and whole life features. Therefore, the nature of a term life policy distinctly excludes the possibility of receiving dividends, making it the correct answer in this context.