A term life insurance policy will pay out the ____ value if the insured dies during the term of the contract.

Question

Quizplus · Accepted Answer

The face value or death benefit is the amount of money that the policy will pay out if the insured dies during the term of the contract. The cash value is only applicable to certain types of life insurance policies and is the amount of money that can be borrowed against the policy or taken as a partial surrender. The premium is the amount of money that the policyholder pays for the insurance coverage. The net value is not a relevant term in the context of life insurance.

A Term Life Insurance Policy Will Pay Out the ____