PSI Life Exam Practice Test

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Prepare for the PSI Life Exam Test. Study using interactive flashcards and multiple-choice questions, each with detailed hints and explanations. Get exam-ready efficiently!

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What amount will be paid to a beneficiary if the insured dies after the policy term has ended?

$100,000
$50,000
Nothing
$10,000

The correct answer is: Nothing

The amount that will be paid to a beneficiary if the insured dies after the policy term has ended is nothing. This concept relates to the nature of term life insurance policies, which provide coverage for a specified period. If the insured passes away during the policy term, the beneficiary receives the stipulated death benefit. However, once the policy term expires, coverage ceases, and no benefits are payable upon death thereafter. Therefore, if the insured dies after the expiration of the policy, the terms of the contract do not obligate the insurer to pay any death benefit. This principle underscores the temporary nature of term life insurance, distinguishing it from permanent life insurance, which offers coverage for the insured's lifetime and builds cash value.