Which statement best describes a term policy's expiration?

Which statement best describes a term policy's expiration?

• A. It expires at the end of its term
• B. It lasts for life
• C. It can never expire
• D. It automatically converts after 5 years

Answer: (A)

A term policy covers you for a fixed period, and the policy ends when that period ends. There is no cash value built up, and if you outlive the term without renewing or converting, the coverage expires. This is why the statement that it expires at the end of its term is the best description. A term policy is not for life, it can expire if not renewed, and while some policies may be convertible or renewable, that isn’t automatic or tied to a specific 5-year rule.

A term policy covers you for a fixed period, and the policy ends when that period ends. There is no cash value built up, and if you outlive the term without renewing or converting, the coverage expires. This is why the statement that it expires at the end of its term is the best description. A term policy is not for life, it can expire if not renewed, and while some policies may be convertible or renewable, that isn’t automatic or tied to a specific 5-year rule.