Term life insurance is characterized by
A)level annual premiums throughout life.
B)premium amounts related to age.
C)inappropriateness for most person's life insurance needs.
D)non-convertibility.
E)cash value.

Question

Quizplus · Accepted Answer

Term life insurance premiums are usually based on the age of the policyholder, meaning that they increase as the policyholder gets older. This is in contrast to whole life insurance policies, which typically have level annual premiums throughout the policyholder's life. Term life insurance is appropriate for many people's life insurance needs, particularly those who only need coverage for a set period of time, such as while their children are young or while they have outstanding debts. Term life insurance is also generally not convertible, meaning that policyholders cannot convert their term policy to a whole life policy later on. Finally, term life insurance does not accrue cash value.

Term Life Insurance Is Characterized by