PSI Life Exam Practice Test

Which insurance policy specifically covers juvenile life?

1. Term life insurance

2. Permanent life insurance

3. Juvenile life policy

4. Group insurance policy

The correct answer is: Juvenile life policy

The juvenile life policy is specifically designed to provide life insurance coverage for children. This type of policy typically offers a small death benefit while locking in the child's insurability at a young age. One of the main advantages of a juvenile life policy is that it can build cash value over time, which can be beneficial for financial planning as the child grows. Additionally, the coverage remains in effect until adulthood, ensuring that future health changes do not affect the child's ability to obtain life insurance. Term life insurance generally provides coverage for a specified period and does not accumulate cash value, making it unsuitable for covering juveniles in the long-term context. Permanent life insurance, while potentially applicable to juveniles, is a broader category that primarily includes policies aimed at adults or has different structures not specifically tailored for children. Group insurance policies are typically offered by employers or organizations and are not oriented towards the individual coverage of children, particularly for life insurance needs. Thus, juvenile life policies are uniquely tailored to cover young individuals, fulfilling specific coverage requirements for that demographic.