Term insurance has which of the following characteristics?

Term insurance has which of the following characteristics?

a) Expires at the end of the policy period

b) Builds cash value

c) Has nonforfeiture options

d) Endows at the end of the policy period

Answer: a) Expires at the end of the policy period

Term insurance is the variety of life insurance which covers you for a fixed period of time, mostly ranging from 1 to 25 years. It has no accretion feature and so the assumption is that at the end of the policy the money will be lost. The policy is valid until the end of the policy term, and the insured must review or purchase a new one if he wishes he want to have coverage continued