New York Insurance Exam Practice Question
Which of the following is a benefit of term life insurance?
Correct Answer: B
Rationale: Term life insurance offers lower premiums than permanent insurance, making it more affordable for individuals seeking coverage for a specific period. This allows policyholders to obtain substantial coverage without a hefty price tag.
Option A is incorrect as term life insurance does not build cash value; that feature is characteristic of permanent life insurance. Option C is misleading; term life insurance typically has level premiums, meaning they do not increase during the term. Option D is also incorrect, as term life insurance does have an expiration date, unlike permanent insurance, which provides lifelong coverage.
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