Moving to another question will save this response. estion 5 Term life insurance

Question

Moving to another question will save this response. estion 5 Term life insurance: 0 a. Provides a death benefit equal to the face value of the policy if the insured dies during the policy period. 0 b. Provides a death benefit that depends on the length of the policy term. c. Provides death protection that varies with interest rates. O d. Provides death protection and a savings accumulation. O e. Provides a cash benefit that varies if the insured dies or is dismembered in an accident. Moving to another question will save this response

Explanation / Answer

For any life insurance policy, the face value is the death benefit. This is the stated dollar amount that the policy's beneficiaries receive upon the death of the insured.

Hence term life will provide death benefit equal to the face value of the policy.

Hence option a is applicable

b is incorrect because death benefit is not dependent on term of policy
c is incorrect because death benefit is not dependent on rate of interest
d is incorrect because term life doenot provide any cash accumulation
e is incorrect because cash benefit is equal to the face value of the term insurance

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