Ace the Chartered Life Underwriter Challenge 2025 – Secure Your Success and Dominate the Exam!

Question: 1 / 400

Which of the following is a key feature of term life insurance?

Set coverage period

Term life insurance is characterized primarily by having a set coverage period, during which the policy provides a death benefit in exchange for premium payments. This timeframe can be specified as a number of years—such as 10, 20, or 30 years—allowing policyholders to select a duration that best suits their needs, such as covering a mortgage or protecting dependents until they are self-sufficient.

This structure allows term life insurance to be more affordable compared to permanent life insurance options that include investment components. Since term policies do not accumulate cash value and do not provide coverage for life, the focus remains on providing financial protection for a specified period, which is essential for many families who want to ensure they have coverage during critical life stages.

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Investment growth potential

Tax-deferred cash value accumulation

Lifetime coverage

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