Tennessee Insurance Practice Exam

Disable ads (and more) with a membership for a one time $2.99 payment

Prepare for the Tennessee Insurance Exam. Master flashcards and multiple-choice questions—each with hints and explanations. Ace your exam with confidence!

Each practice test/flash card set has 50 randomly selected questions from a bank of over 500. You'll get a new set of questions each time!

Practice this question and more.

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
Universal Life
Variable Life

The correct answer is: 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.