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LLQP (Life Licence Qualification Program) Practice Exam · Question

What is the primary function of term life insurance?

Term life insurance provides a death benefit only if the insured dies during the specified term of the policy. It does not accumulate cash value.

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Question: What is the primary function of term life insurance?

Answer options: ✅ To provide life insurance coverage for a specific period of time.

  • To build a cash value that can be borrowed against.
  • To provide a lifetime of coverage with level premiums.
  • To offer investment options within the policy.

Correct answer: To provide life insurance coverage for a specific period of time.

Explanation: Term life insurance provides a death benefit only if the insured dies during the specified term of the policy. It does not accumulate cash value.

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