Question

What is the main benefit of Term Life insurance as an income replacement plan?

a.

It provides a lump-sum amount to beneficiaries.

b.

It offers higher returns on investment.

c.

It replaces a lump-sum amount with periodic payments.

d.

It has a cash value that grows over time.

Posted under IC38 Life Insurance Agent Exam

Answer: (c).It replaces a lump-sum amount with periodic payments. Explanation:Term Life insurance as an income replacement plan replaces a lump-sum amount with periodic payments to the dependent beneficiaries, helping to replace the insured individual's income.

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Q. What is the main benefit of Term Life insurance as an income replacement plan?
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