Life & Health Insurance Practice Exam 2026 - Free Practice Questions and Study Guide

Question: 1 / 470

What is one key difference between term life insurance and whole life insurance?

Whole life insurance covers the insured’s entire life, while term insurance is for a specified period

One key difference between term life insurance and whole life insurance is that whole life insurance provides coverage for the insured's entire life, whereas term life insurance is designed to cover the insured for a specified period of time only. This fundamental structure means that term insurance is often chosen for temporary needs, such as protecting a family during the years when children are dependent, while whole life insurance serves as a permanent solution for lifelong coverage.

In addition to the coverage duration, whole life insurance typically includes a cash value component that grows over time, which is not a feature of term life insurance. This makes option A a clear and accurate distinction relevant to understanding the nature of both types of policies.

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Whole life insurance is typically less expensive than term insurance

Term insurance can accumulate cash value over time

Whole life insurance does not require health underwriting

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