West Virginia State Life Insurance Practice Exam

A term life insurance policy matures under which condition?

1. Upon reaching a certain age

2. Upon the insured's death during the term of the policy

3. At the end of the term regardless of the insured's status

4. On the 20th policy anniversary

The correct answer is: Upon the insured's death during the term of the policy

A term life insurance policy is designed to provide coverage for a specified period, known as the term. The maturity of a term life insurance policy occurs when the insured individual passes away during the specified term of coverage. If the insured dies while the policy is in force, the death benefit is paid to the beneficiaries, which is the primary purpose of term life insurance. While other options might relate to different aspects of insurance policies—such as whole life insurance that matures at a certain age or on specific anniversaries—term life insurance specifically pays out only upon the death of the insured during the term. If the insured survives the term, no benefit is paid, but this does not constitute a "maturity" of the policy. The clear focus of term insurance is on providing a financial safety net in the event of death within the designated time frame.