Sheila obtains a life insurance policy with no cash surrender value and names her son Theo as the beneficiary. This is

Question

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Term insurance provides coverage for a specific period of time and has no cash value. Naming a beneficiary, such as Sheila did with her son Theo, means that if she were to pass away during the term of the policy, the insurance company would pay out the death benefit to Theo. Endowment insurance, limited-payment life insurance, and whole life insurance all have cash surrender values and are typically designed as investment and savings products in addition to providing life insurance coverage.

Sheila Obtains a Life Insurance Policy with No Cash Surrender