The true statement about term life insurance is:
Term life insurance pays benefits to named beneficiaries when the policy holder dies during the duration of the policy.
The other statements are incorrect regarding term life insurance. Specifically:
- Term life insurance is generally less expensive for young policyholders compared to whole life or permanent insurance.
- Term life insurance policies are not permanent; they provide coverage for a specific term.
- While premiums may increase in some term life insurance policies upon renewal, most term policies have level premiums that remain constant throughout the term.