CARD Q026
A buyer wants a fixed death benefit for a 15-year period and does not need cash value. Which product most directly fits?
- Level term life
- Whole life
- Decreasing term life
- Universal life
Level term life
Level term keeps the face amount level for the stated term. Standard term insurance does not accumulate cash value.
Why each choice is right or wrong
A. Level term life
Correct. Level term keeps the face amount level for the stated term. Standard term insurance does not accumulate cash value.
B. Whole life
Incorrect. Whole life is permanent coverage with cash-value features beyond the stated temporary need.
C. Decreasing term life
Incorrect. Decreasing term reduces the scheduled benefit instead of keeping it fixed.
D. Universal life
Incorrect. Universal life is a permanent cash-value design, not the direct match for this fixed temporary need.
Review the related terms
Use these lessons to revisit the concepts and try additional practice questions.