Texas Life Agent Practice Exam

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Prepare for the Texas Life Agent Exam. Study with flashcards and multiple-choice questions, each with hints and explanations. Get ready for your career as a licensed life insurance agent in Texas!

Practice this question and more.

Which life insurance policy type is recommended for individuals with a limited budget seeking temporary coverage?

Term Life
Whole Life
Universal Life
Variable Life

The correct answer is: Term Life

Term life insurance is specifically designed to meet the needs of individuals looking for temporary coverage at a more affordable price. It provides a death benefit for a specified period, such as 10, 20, or 30 years, making it an excellent option for those who may not have the financial means for more expensive permanent policies. The primary focus of term life is to offer a safety net during critical years, such as raising children or paying off a mortgage, without the higher premiums associated with whole life, universal life, or variable life insurance. These other types of policies typically include a cash value component and are often more expensive because they provide lifelong protection and potential investment growth. As a result, term life is the most appropriate choice for budget-conscious individuals seeking temporary coverage.