Term Insurance is appropriate for someone who

• A. seeks permanent lifetime protection
• B. seeks temporary protection with lower premiums
• C. needs cash value accumulation
• D. wants guaranteed insurability

Answer: (B)

Term insurance provides pure life protection for a specified period at a lower cost because it has no cash value. It’s ideal for temporarily meeting financial obligations or protecting dependents during the years you expect to need coverage, such as while paying a mortgage or funding a child’s education. If the term ends, the policy generally ends unless you renew or convert, usually at a higher premium since you’re older. This aligns with someone who wants temporary protection with lower premiums. Choices describing permanent lifetime protection or cash value buildup refer to permanent life insurance, not term. While some plans may offer guaranteed insurability as a feature, the main advantage of term is affordable coverage for a finite period.