Term life insurance provides coverage for a specific period at a lower premium cost compared to permanent insurance, such as whole life. The primary advantage is its affordability, making it suitable for individuals needing significant coverage with lower initial costs. Unlike whole life, term life does not accumulate cash value, and premiums typically increase upon renewal as the insured ages.
Option A: Incorrect. Premiums for term life do not decrease as the insured ages; they increase at renewal due to higher risk.
Option B: Incorrect. While death benefits in level term policies remain constant during the term, this is not the primary advantage compared to lower costs.
Option C: Correct. Term life has lower initial costs, making it more affordable for the same coverage amount compared to permanent insurance.
Option D: Incorrect. Term life does not offer a cash value, a feature of permanent insurance.
This question aligns with the Prometric content outline under “Life Products,” which covers the characteristics and advantages of term life insurance.
[:, Prometric Oklahoma Life, Accident, and Health or Sickness Producer Exam Content Outline (Section: General Knowledge – Life Insurance)., Oklahoma Insurance Department, Title 36 O.S. § 4002 (definitions of life insurance products)., Standard insurance study guides (e.g., Kaplan, ExamFX) for Oklahoma producer licensing., ]
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