Which statement about term life insurance is NOT true?

Term life insurance is designed to provide coverage for a specific period, such as 10, 20, or 30 years. During this term, the policy pays a death benefit if the insured passes away; however, once the term expires, there is no payout, and the policy does not retain any cash value.

The notion that term life insurance allows for cash value accumulation is not true. This feature is commonly associated with whole life insurance, which provides both a death benefit and a savings component that builds cash value over time. In contrast, term life insurance is typically more affordable than whole life since it does not include these savings aspects or any cash value.

While it is accurate that term life insurance can often be renewed at the end of the term, this renewal feature does not confer any cash value to the policy. The lower initial cost and term-specific coverage make term life insurance appealing for many policyholders who wish for straightforward protection without the additional costs associated with cash value accumulation.