PSI Life Exam Practice Test 2026 – Complete Preparation Resource

Question: 1 / 400

What amount will be paid to a beneficiary if the insured dies after the policy term has ended?

$100,000

$50,000

Nothing

The amount that will be paid to a beneficiary if the insured dies after the policy term has ended is nothing. This concept relates to the nature of term life insurance policies, which provide coverage for a specified period. If the insured passes away during the policy term, the beneficiary receives the stipulated death benefit. However, once the policy term expires, coverage ceases, and no benefits are payable upon death thereafter. Therefore, if the insured dies after the expiration of the policy, the terms of the contract do not obligate the insurer to pay any death benefit. This principle underscores the temporary nature of term life insurance, distinguishing it from permanent life insurance, which offers coverage for the insured's lifetime and builds cash value.

Get further explanation with Examzify DeepDiveBeta

$10,000

Next Question

Report this question

Download PSI Life Exam Practice Test PDF Study Guide
Subscribe

Get the latest from Examzify

You can unsubscribe at any time. Read our privacy policy