Question

Jeremy Osteryoung is buying life insurance for a period of 20 years. It will pay a benefit to his beneficiaries only if he dies during this 20 year period. What type of life insurance has Jeremy purchased?

Answer 1

Term insurance.

Step-by-step explanation:

Term insurance is intended to provide coverage to the insured for a certain period. Death benefit is paid only if the insured dies during the policy tenure; else noting is paid.

The main purpose of taking such life insurance is to provide life cover to the policyholder.