Term insurance provides life insurance with an accumulated cash surrender value that can be used as collateral for a loan.

Question

Quizplus · Accepted Answer

Term insurance is a type of life insurance that does not accumulate any cash value or surrender value. It only provides a death benefit to the beneficiary if the insured person passes away during the term of the policy. Therefore, it cannot be used as collateral for a loan.

Term Insurance Provides Life Insurance with an Accumulated Cash Surrender