Question 27

Face amount is paid if the insured survives to the end of the policy period.

Term life insurance policies do not pay out the face amount if the insured survives the policy period; they are designed to provide coverage only during the specified term and do not have a cash value.

A) Insured can choose the premium payment mode.

This statement is true as term life insurance policies generally allow the insured to select from various premium payment modes, such as monthly, quarterly, or annually, according to their financial preferences.

B) Insured must answer medical questions on the application.

This statement is also true; typically, applicants for term life insurance must answer medical questions to assess their risk and determine eligibility, which is a standard part of the underwriting process.

C) Face amount is paid if the insured dies during the policy period.

This statement accurately reflects the nature of term life insurance, where the face amount is indeed paid out if the insured passes away while the policy is active.

D) Face amount is paid if the insured survives to the end of the policy period.

This statement is false; term life insurance does not provide a payout if the insured survives the policy term, which distinguishes it from whole life or permanent insurance policies that may offer benefits regardless of when the insured dies.

Conclusion

The statement that the face amount is paid if the insured survives to the end of the policy period is definitively incorrect concerning term life insurance policies. Options A, B, and C correctly describe features of term life insurance, while option D inaccurately suggests a benefit that does not exist in this type of insurance. Thus, option D is the only false statement among the choices provided.