Darcy buys a life insurance policy on her own life,under which she pays the annual premiums.The insurance is issued for a specific period,but is renewable for similar periods.Darcy is covered only as long as she makes the payments.There is no cash value portion to the policy.Darcy probably owns

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The policy described in the scenario is a term life insurance policy. This is because it is issued for a specific period and is renewable for similar periods, and there is no cash value portion. Term life insurance policies provide coverage for a specific period of time (e.g. 10 or 20 years), and if the policyholder dies during that time, their beneficiaries receive a death benefit. Darcy pays annual premiums for this insurance, which is typical for term life policies. While key-person life insurance may be purchased by a business to protect against the loss of a key employee, or a whole life insurance policy may have a cash value component, neither of these options match the details provided in the scenario.

Darcy Buys a Life Insurance Policy on Her Own Life,under