Nifty Insurance Blogger

Which of the following best describes term life insurance?

A. The insured is covered during his or her entire lifetime.
B. The insured pays the premium until his or her death.
C. The insured pays a premium for a specified number of years.
D. The insured can borrow or collect the cash value of the policy. -Seth

Tags: Insurance, Lifetime, Term Insurance, Term Life Insurance

This entry was posted on Sunday, November 16th, 2008 at 5:02 pm and is filed under Homework Help. You can follow any responses to this entry through the RSS 2.0 feed. You can leave a response, or trackback from your own site.

4 Responses to “Which of the following best describes term life insurance?”

1. Robbie trd Says:
   November 17th, 2008 at 8:57 am

   What is C, Alex?

   Seriously, you are only buying coverage for the term specified. Anything that happens after that term lapses, unless you sign on for another term policy, ends.

2. Charlie Babbage Says:
   November 17th, 2008 at 1:15 pm

   I don’t think that any of them give the correct definition.

   Term life insurance pays a lump sum ONLY IF the life assured dies during a specified term. Of course, the premiums have to be paid thoughout the term or until previous death. This type of policy is usually cheap but it does not acquire a surrender value.

3. Ron@InsureMe Says:
   November 17th, 2008 at 10:51 pm

   The answer is C. You pay for a certain # of years & are covered during that time.

   Ron @ InsureMe

4. Hadley Says:
   November 21st, 2008 at 3:56 am

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

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