question 8 of 60 which of the following would be considered a disadvantage of term insurance? a. the policy…

question 8 of 60 which of the following would be considered a disadvantage of term insurance? a. the policy provides the smallest amount of coverage for the highest premium. b. if the insured dies during the term, the policy pays only the accumulated cash value. c it cannot be renewed or converted to a permanent policy d. if the insured dies after the end of the term, there is no death benefit to the beneficiary

question 8 of 60 which of the following would be considered a disadvantage of term insurance? a. the policy provides the smallest amount of coverage for the highest premium. b. if the insured dies during the term, the policy pays only the accumulated cash value. c it cannot be renewed or converted to a permanent policy d. if the insured dies after the end of the term, there is no death benefit to the beneficiary

Answer

Brief Explanations:

Term - insurance provides coverage for a specific term. Once the term ends, if the insured is still alive, the policy terminates and there is no death - benefit payout to the beneficiary. This lack of a payout after the term is a significant drawback. Option A is incorrect as term insurance generally provides high coverage for relatively low premiums. Option B is incorrect because term insurance typically has no cash - value accumulation. Option C is incorrect as many term insurance policies can be renewed or converted.

Answer:

D. If the insured dies after the end of the term, there is no death benefit to the beneficiary