PSI Ohio Insurance Practice Exam 2025 – Complete Preparation Guide

Term Life Insurance is designed specifically to provide the highest level of protection for a specified period, making it ideal for individuals seeking coverage for a limited time. This type of policy offers a straightforward, high death benefit relative to its premium cost, especially compared to permanent life insurance options.

With Term Life Insurance, policyholders choose the duration of coverage, which can range from one to several decades. Should the insured pass away during the term, the beneficiaries receive the death benefit. However, if the term expires and the insured is still living, the policy does not accumulate any cash value, nor does it pay out a benefit.

In contrast, Whole Life, Universal Life, and Variable Life Insurance are permanent life insurance products that remain in force for the lifetime of the insured, provided premiums are paid. These policies usually accumulate cash value over time, but they generally come with higher premiums than term policies and may not offer the same level of pure death benefit during a limited term when compared to term insurance. Therefore, for someone looking for high protection at a lower cost for a finite period, Term Life Insurance is the most appropriate choice.