New Jersey Life Insurance Exam Practice Question
Sarah Harding is insured under a $100,000 10-year Level Term Life Insurance Policy. If Sarah dies during the third year of the policy period, her beneficiaries will receive
Correct Answer: D
Rationale: A 10-year Level Term Life Insurance Policy provides a fixed death benefit for the duration of the policy. In this case, Sarah Harding is insured for $100,000, meaning her beneficiaries will receive this full amount upon her death, regardless of when it occurs within the policy term.
Options A, B, and C suggest partial payouts based on the policy's duration, which is incorrect. Term life insurance guarantees the full face value to beneficiaries at the time of death, ensuring financial support as intended. Therefore, the beneficiaries will receive the full $100,000.
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