California Insurance License Exam Practice Test Practice Question
All of the following are true about term life insurance policies EXCEPT the
Correct Answer: D
Rationale: Term life insurance policies provide coverage for a specific period, and if the insured dies during this term, the face amount is paid to beneficiaries.
Option A is accurate as policyholders can choose how frequently they want to pay premiums (monthly, annually, etc.). Option B is also true; applicants typically must answer medical questions to assess risk and determine eligibility. Option C correctly states that the face amount is paid upon the insured's death during the policy period.
In contrast, Option D is incorrect because term life insurance does not pay out if the insured survives the policy period; this feature is characteristic of whole life or permanent insurance.
Unlock All Questions
Subscribe to Premium for full access to all practice questions, detailed rationales, and performance tracking.
Subscribe Now