Florida Insurance Licensing Practice Exam

A term life insurance policy is defined as a type of life insurance designed to provide coverage for a specific duration or term. This means that the policyholder pays premiums for a set period, which can range from one year to several decades, and if the insured individual passes away during this term, a death benefit is paid out to the beneficiaries. If the term expires while the insured is still alive, the coverage ends, and no benefit is paid. This form of insurance is popular for its affordability compared to permanent life insurance options, as it focuses solely on providing coverage for a defined time rather than accumulating cash value.

The other types mentioned in the question do not align with the characteristics of term life insurance. Coverage limited to critical illnesses pertains to specialized insurance, and policies that do not require premiums or which pay out upon retirement do not reflect the nature of term life insurance, which is specifically about providing death benefits for a set period.