Which of the following best describes term life insurance?

Question

Question 10 options:

A)

The insured pays a premium for a specified number of years.

B)

The insured pays the premium until his or her death.

C)

The insured is covered during his or her entire lifetime.

D)

The insured can borrow or collect the cash value of the policy.

Answer 1

The option that best describes term life insurance is:

A) The insured pays a premium for a specified number of years.

Term life insurance provides coverage for a specific period (the "term"), and the insured pays premiums during that time. If the insured dies within the term, the policy pays out a death benefit; if they outlive the term, the coverage ends, and there is typically no payout or cash value.