Which of the following is an example of temporary life insurance?
A)The policy holder can borrow against the cash value.
B)It provides an annuity until death.
C)The premium is constant through the life of the policy.
D)The premium is matched every year to the amount needed to match against death.

Question

Quizplus · Accepted Answer

Option D refers to term life insurance, where the premium is adjusted every year to match the required amount necessary to cover the policyholder against death. This is a form of temporary life insurance as it only covers the policyholder for a particular period, usually between 5 to 30 years. Option A refers to whole life insurance, where the policyholder can borrow against the cash value. Option B is a form of permanent life insurance, where an annuity is provided until death. Option C refers to level term insurance, where the premium remains constant through the duration of the policy.

Which of the Following Is an Example of Temporary Life