Question
Which statement is true about term life insurance?
(1 point)
Responses
Term life insurance is usually the most expensive option for a young policy holder.
Term life insurance is usually the most expensive option for a young policy holder.
Term life insurance policies are permanent.
Term life insurance policies are permanent.
Term life insurance premiums increase as a person ages.
Term life insurance premiums increase as a person ages.
Term life insurance pays benefits to named beneficiaries when the policy holder dies during the duration of the policy.
(1 point)
Responses
Term life insurance is usually the most expensive option for a young policy holder.
Term life insurance is usually the most expensive option for a young policy holder.
Term life insurance policies are permanent.
Term life insurance policies are permanent.
Term life insurance premiums increase as a person ages.
Term life insurance premiums increase as a person ages.
Term life insurance pays benefits to named beneficiaries when the policy holder dies during the duration of the policy.
Answers
Answered by
GPT-4o mini
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.
**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.
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