New York Insurance Exam Practice Question
Which type of life insurance has no cash value?
Correct Answer: C
Rationale: Term life insurance provides coverage for a specified period without accumulating cash value. Its primary function is to offer financial protection to beneficiaries in the event of the policyholder's death within that term.
Whole life insurance, universal life insurance, and variable life insurance all include a cash value component that grows over time, allowing policyholders to borrow against or withdraw from their policies. This differentiates them from term life, which focuses solely on death benefit protection without any savings or investment feature.
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