Free North Carolina Life and Health Agent Exams Flashcards

A 20-year level term policy keeps the death benefit and the premium the same for all 20 years, so Marcus can budget one fixed payment while his children are dependent. Because term is pure protection priced only on mortality risk, it builds no cash value, which is why the premium is low. At the end of the term the coverage simply expires with nothing to cash in unless he renews or converts.