Which term describes life insurance that pays a death benefit if the policyholder dies within a specific time period?

• A. Whole life insurance
• B. Insurance policy
• C. Term life insurance
• D. Collectibles

Answer: (C)

Term life insurance is designed to provide a death benefit only if the insured dies within a defined period, such as 10, 20, or 30 years. That fits the description perfectly: you’re paying for protection over a set time, and if death occurs during that period, the beneficiary receives the payout. If you outlive the term, the policy ends (unless you renew or convert it), and there’s typically no payout. This distinguishes it from other types that either last for a lifetime or are not specifically a life insurance product. Whole life, for example, lasts for the insured’s lifetime and includes cash value, so it doesn’t match the “within a specific time period” condition. The generic term “insurance policy” is too broad, and collectibles aren’t related to life insurance at all.