California Life and Health Insurance Practice Exam 2025 – Complete Test Prep

Question: 1 / 400

Which type of life insurance pays a specific amount upon the insured's death without any cash value?

Whole life insurance.

Universal life insurance.

Term life insurance.

Term life insurance is designed to provide a death benefit for a specified period, known as the term. This type of policy pays a predetermined amount to the beneficiaries upon the insured's death if it occurs within that set time frame. Importantly, term life insurance does not accumulate cash value like whole or universal life insurance policies do. Instead, it primarily serves as a temporary financial safety net, offering straightforward coverage without any investment component.

This makes it particularly appealing for individuals seeking affordable protection for a specific duration, such as covering mortgage payments or ensuring dependents are financially secure until they reach adulthood. The pure focus on providing a death benefit with no cash value aspect differentiates term life insurance from other types of permanent life insurance, which include features that build cash value over time.

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Final expense insurance.

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