Question
Which statement is true about term life insurance?
A. Term life insurance is usually the most expensive option for a young policyholder.
B. Term life insurance policies are permanent.
C. Term life insurance premiums increase as a person ages.
D. Term life insurance pays benefits to named beneficiaries when the policyholder dies during the duration of the policy.
A. Term life insurance is usually the most expensive option for a young policyholder.
B. Term life insurance policies are permanent.
C. Term life insurance premiums increase as a person ages.
D. Term life insurance pays benefits to named beneficiaries when the policyholder dies during the duration of the policy.
Answers
GPT-4o mini
The true statement about term life insurance is:
**D. Term life insurance pays benefits to named beneficiaries when the policyholder dies during the duration of the policy.**
Term life insurance provides coverage for a specified period (the "term") and pays out a death benefit if the policyholder passes away within that term. The other statements are incorrect regarding the nature and cost of term life insurance.
**D. Term life insurance pays benefits to named beneficiaries when the policyholder dies during the duration of the policy.**
Term life insurance provides coverage for a specified period (the "term") and pays out a death benefit if the policyholder passes away within that term. The other statements are incorrect regarding the nature and cost of term life insurance.