For a $500,000 10-year nonrenewable level term policy, if death occurs 15 years after inception, how much will the beneficiary receive?

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Study for the Louisiana Series 103 – Life, Health, and Accident or Sickness Insurance Exam. Familiarize yourself with key concepts through engaging questions and explanations. Prepare effectively for your exam!

Multiple Choice

For a $500,000 10-year nonrenewable level term policy, if death occurs 15 years after inception, how much will the beneficiary receive?

Explanation:
Nonrenewable term life provides a fixed death benefit for a specific period. After that period ends, the policy terminates and no death benefit is payable if death occurs later. Here, the policy covers 10 years, but death happens at year 15, five years after coverage ended. Since the policy is no longer in force, there is nothing to pay to the beneficiary. Term policies don’t accumulate cash value, so there’s no other amount available.

Nonrenewable term life provides a fixed death benefit for a specific period. After that period ends, the policy terminates and no death benefit is payable if death occurs later. Here, the policy covers 10 years, but death happens at year 15, five years after coverage ended. Since the policy is no longer in force, there is nothing to pay to the beneficiary. Term policies don’t accumulate cash value, so there’s no other amount available.

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