Tennessee Insurance Practice Exam 2025 – All-in-One Resource for Exam Success!

Question: 1 / 400

If a client wants the lowest possible premium for coverage only for a limited time, what type of policy is needed?

Whole Life

Term Life

A term life policy is specifically designed for individuals seeking coverage for a defined period at an affordable rate. This type of insurance typically provides a higher death benefit for a lower premium compared to permanent life insurance options. Since the client is interested in the lowest possible premium and coverage for a limited time, a term life policy is the ideal choice.

Whole life, universal life, and variable life insurance policies include lifelong coverage and often incorporate a cash value component, which means they are generally more expensive and do not align with the client's needs for a low-cost, time-limited solution. Term life focuses solely on pure life coverage without additional investment or savings features, making it the most suitable option for budget-conscious individuals who require protection only for a specific duration.

Get further explanation with Examzify DeepDiveBeta

Universal Life

Variable Life

Next Question

Report this question

Subscribe

Get the latest from Examzify

You can unsubscribe at any time. Read our privacy policy