Ace the Xcel Life Policies Exam 2025 – Your Leap to Insurance Success!

A term life insurance policy primarily covers the insured for a specified term. This means that the coverage is only in effect for a predetermined period, which can range from one year to multiple decades. If the insured passes away during this term, the policy pays a death benefit to the beneficiaries. If the term expires and the insured is still alive, the coverage ends unless the policy is renewed or converted to a permanent life insurance policy.

Term life insurance is designed to provide financial protection during a specific timeframe, often aligned with the insured's financial responsibilities, such as raising children or paying off a mortgage. Unlike permanent life insurance policies, term life does not build cash value over time and is typically more affordable compared to whole or universal life insurance, making it a popular choice for those seeking cost-effective coverage for a defined period.