What is the defining characteristic of term life insurance?

What is the defining characteristic of term

Multiple choice — select the best answer

AIt always builds cash value
BIt provides protection for a specified period with no cash value
CIt guarantees a paid-up policy at age 65
DIt pays dividends to the policyowner

✓ Correct answer: B. It provides protection for a specified period with no cash value Term life provides pure death-benefit protection for a stated term and ordinarily accumulates no cash value, making it the lowest-cost coverage per dollar of death benefit.

.q-expl{display:block!important}.q-opt[data-idx="1"]{border-color:#16a34a;background:#f0fdf4}.q-opt[data-idx="1"] .oltr{background:#16a34a;color:#fff}.q-opt{cursor:default!important;pointer-events:none}

Keep practising. Use the free Life Health Insurance PDF, watch the YouTube walkthrough, or unlock all 10 web questions with timed mock exams.

Free PDF Video walkthrough

Topic: Life Insurance Basics & Types

← Previous Next → 🎲 Random question ↩ Back to all questions

Keep practising

What is the defining characteristic of term life insurance?

Related questions — Life Insurance Basics & Types

Free practice here. Timed mocks when you are ready.