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

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

Term insurance provides coverage for the entire lifespan, while life insurance covers a specific period.

Term insurance covers only premature death, while life insurance covers both premature death and survival until the policy matures.

Term insurance is more flexible than life insurance in terms of coverage options.

Term insurance offers higher premiums compared to life insurance.

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What is the primary characteristic of term insurance that distinguishes it from whole-life insurance?

"Term insurance accumulates cash value over time."

"Term insurance premiums fluctuate based on market performance."

"Term insurance offers investment opportunities."

"Term insurance provides coverage for a predetermined period."

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Does term insurance typically offer a maturity benefit?

Usually not

Only for specific policies

Yes, always

It depends on the insurance provider

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What is a key advantage of term insurance compared to whole-life insurance?

"More comprehensive coverage benefits"

"Higher potential returns on investment"

"Greater affordability due to a fixed premium"

"Guaranteed cash value accumulation"

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What type of life insurance offers coverage for a specific period and does not include a savings component?

"Whole Life Policy"

"Money Back Policy"

"Term Insurance"

"Endowment Plan"

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What is a key feature of most term insurance plans?

They have a surrender value that can be redeemed.

They offer guaranteed bonuses and additional benefits.

They have an assured minimum sum that the insurer promises to pay.

They provide coverage for the policyholder's entire life.