[Solved] Which of the following statements about the policy term in term insurance is correct? — Ans: The policy term is generally fixed and can range from 5 to 40 years. | Insurance Awareness

Insurance Awareness - Life Insurance - LIC

Which of the following statements about the policy term in term insurance is correct?

AThe policy term can be lifelong without any fixed period.

BThe policy term is always less than 5 years.

CThe policy term is generally fixed and can range from 5 to 40 years.

DThe policy term automatically extends after maturity.

Step-by-Step Solution

Step 1: Understand typical policy terms
Term insurance policies usually have a fixed coverage period, commonly between 5 and 40 years, depending on the insurer and product.
Final Answer:
The policy term is generally fixed and can range from 5 to 40 years. → Option C
Quick Check:
Policy term is generally = correct choice ✅

Quick Trick: Remember: Term insurance = fixed term, not lifelong.

Common Mistakes:

MISTAKES

Assuming term insurance can be lifelong or automatically renewed after maturity.

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Which of the following statements about the policy term in term insurance is correct?