ADFP Practice Test – Comprehensive Exam Prep 2026

Question: 1 / 400

Which type of life insurance pays a death benefit only if the insured dies within a specified period?

Whole life insurance

Term life insurance

Term life insurance is designed to provide coverage for a specific duration, which is why it pays out a death benefit only if the insured dies within that predetermined period. This type of insurance is often more affordable than permanent policies because it does not accumulate cash value and is intended purely for providing financial protection during the specified term.

Whole life insurance, universal life insurance, and variable life insurance are forms of permanent insurance, which means they cover the insured for their entire lifetime as long as premiums are paid. These types generally include a savings or investment component that builds cash value over time, unlike term life insurance. Therefore, the main distinction lies in the limited duration of coverage that term life offers, aligning with the question's focus on conditional death benefits within a specific time frame.

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Universal life insurance

Variable life insurance

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