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    Question

    What is a type of life insurance policy that provides

    coverage for a certain period of time, or a specified “term” of years?
    A Catastrophe Reinsurance Correct Answer Incorrect Answer
    B Excess of Loss Reinsurance Correct Answer Incorrect Answer
    C Facultative Reinsurance Correct Answer Incorrect Answer
    D Term Insurance Correct Answer Incorrect Answer
    E None of these Correct Answer Incorrect Answer

    Solution

    Term insurance is a type of life insurance policy that provides coverage for a certain period of time, or a specified "term" of years. If the insured dies during the time period specified in the policy and the policy is active - or in force - then a death benefit will be paid. Term insurance is initially much less expensive when compared to permanent life insurance. Unlike most types of permanent insurance, term insurance has no cash value.

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