Primerica Life Producer Practice Test

Which type of insurance is typically used for temporary needs rather than long-term protection?

1. Whole life insurance

2. Term life insurance

3. Universal life insurance

4. Variable life insurance

The correct answer is: Term life insurance

Term life insurance is specifically designed to provide coverage for a specified period, making it ideal for temporary needs. This type of insurance offers a straightforward death benefit without any cash value accumulation, thus focusing solely on providing financial protection during a predetermined term, typically ranging from one to thirty years. It's often chosen by individuals who need coverage for certain life stages or financial obligations that diminish over time, such as a mortgage or raising children. Once the term expires, coverage ends unless it is renewed or converted to another type of policy, making it a practical solution for those wanting to ensure beneficiaries are protected during critical years without the long-term commitment or cost associated with permanent insurance options. The other types of insurances mentioned, such as whole life, universal life, and variable life, are designed for long-term protection and often include savings components or investment options, which differentiates them from term life insurance's more transient focus.