All Life Insurance Tips

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.

Public Comments

1. 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. 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. The answer is C. You pay for a certain # of years & are covered during that time. Ron @ InsureMe http://www.insureme.com/landing.aspx?Refby=614505&Type=life
4. C. The insured pays a premium for a specified number of years.