Florida Life and Health Insurance License Practice Test

A term life insurance policy matures?

1. When the policy is surrendered for its cash value.

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

3. At the end of the policy term regardless of the insured’s status.

4. When the insured reaches age 100.

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

A term life insurance policy matures when the insured passes away during the policy term. This means that the policy will pay out the death benefit to the designated beneficiary upon the death of the insured. Option A is incorrect because term life insurance policies do not have a cash value to surrender. Option C is incorrect because a term life insurance policy does not have a maturity date, unlike a whole life insurance policy. Option D is incorrect because term life insurance policies have a specific term length and do not extend until age 100.