Darcy buys a life insurance policy on her own life, under which she pays the annual premiums. The in-surance is issued for a specific period, but is renewable for similar periods. Darcy is covered only as long as she makes the payments. There is nocash value portion to the policy. Darcy probably owns:

A. whole life insurance.

B. key-person life insurance.

C. term life insurance.

D. an annuity.

Question

Social Studies

Maxine

25 October, 13:39

Darcy buys a life insurance policy on her own life, under which she pays the annual premiums. The in-surance is issued for a specific period, but is renewable for similar periods. Darcy is covered only as long as she makes the payments. There is nocash value portion to the policy. Darcy probably owns:

A. whole life insurance.

B. key-person life insurance.

C. term life insurance.

D. an annuity.

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Answers (1)

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Camron · Answer 1

Answer: Term life insurance

Explanation: Under this form of life insurance, an individual pays a fixed rate of payment fro the insurance. These payments are made for a limited period of time and if the buyer wants to renew the insurance new rates and terms will be offered to him by the company.

In the given case, Darcy is paying annual premiums for her life insurance. And the existing agreement of insurance stands for a limited period.

Hence from the above we can conclude that the correct option is C.