What is the primary distinction between term insurance and life insurance?

Term insurance covers only premature death, while life insurance covers both premature death and survival until the policy matures. Term insurance offers higher premiums compared to life insurance. Term insurance provides coverage for the entire lifespan, while life insurance covers a specific period. Term insurance is more flexible than life insurance in terms of coverage options.

Which type of insurance typically has lower and more affordable premiums?

Life insurance Term insurance Universal insurance Variable insurance

Does term insurance typically offer a maturity benefit?

Yes, always Usually not Only for specific policies It depends on the insurance provider

What is the typical coverage duration for term insurance?

5 to 30 years 10 to 35 years Entire lifespan Variable, depending on the policy

Which type of insurance is generally considered more flexible?

Term insurance Life insurance Both offer equal flexibility Flexibility depends on the specific policy

What is a key feature of most term insurance plans?

They offer guaranteed bonuses and additional benefits. They have a surrender value that can be redeemed. They provide coverage for the policyholder's entire life. They have an assured minimum sum that the insurer promises to pay.

What is the main purpose of life insurance?

To provide a cash benefit to the policyholder upon maturity. To cover medical expenses in case of illness. To offer investment opportunities for financial growth. To provide a death benefit to the beneficiary in case of the policyholder's death.

How does term insurance help families?

It provides a source of income for surviving family members. It covers education expenses for children. It helps families maintain their lifestyle without financial worry in case of the policyholder's death. It offers investment options to grow family wealth.