Primerica Life Producer Exam Practice Test 2025 – Complete Prep Resource

Question: 1 / 400

What is the primary characteristic of "term life insurance"?

It provides lifelong coverage without an expiration

It pays a death benefit only within a specified term

The primary characteristic of term life insurance is that it pays a death benefit only within a specified term. Term life insurance is designed to provide coverage for a set period, which can range from one year to several decades, and if the policyholder passes away during this term, the beneficiaries receive the death benefit. If the policyholder outlives the term, the coverage ends, and there is no payout; thus, it does not accumulate any cash value or provide lifelong coverage. This structure makes term life insurance a straightforward and usually more affordable option for those seeking temporary financial protection for their loved ones.

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It accumulates cash value over time

It offers a guaranteed return on investment

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