Tennessee Insurance Practice Exam

Which life insurance policy provides a death benefit after a specified period regardless of the insured's age?

1. Term Life

2. Endowment Life

3. Whole Life

4. Universal Life

The correct answer is: Endowment Life

The option indicating Endowment Life is the correct answer because this type of policy is specifically designed to provide a death benefit if the insured passes away during the policy term and will mature at the end of that specified period, paying out the face amount regardless of the insured's age if they live to the end of the term. This distinct feature of offering a fixed sum either at death or upon reaching the end of the predetermined period sets it apart from other types of policies. Term life insurance, for instance, only pays a death benefit if the insured dies within a specified term, and if the term expires without a claim, no benefits are paid. Whole life policies, on the other hand, provide coverage for the insured's entire life and include a cash value component, but they do not guarantee a payout after a fixed term. Lastly, universal life insurance allows for flexible premiums and death benefits but does not inherently provide a payout after a specific period unless certain conditions are met. Therefore, Endowment Life stands out by guaranteeing a benefit after a designated timeframe, making it unique in the context of life insurance policies.