Leo purchases a $50,000 5-year level term policy. Which of the following statements about Leo's coverage is CORRECT?
A) The policy provides a straight, level $50,000 of coverage for 5 years.
B) If Leo dies at any time during the 5 years, his beneficiary will receive the policy's face value plus the policy's cash value.
C) If Leo lives beyond the 5 years, the premium for the existing policy will increase.
D) If Leo dies after the specified 5 years, only the policy's cash value will be paid."
Answer: A) The policy provides a straight, level $50,000 of coverage for 5 years.
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