Which of the following statements is TRUE about level term insurance?

Level term insurance provides a fixed death benefit and level premiums for a specified term, making it a popular choice for individuals seeking temporary coverage. The statement that it is temporary protection accurately reflects the nature of this type of insurance. Level term policies are designed to cover the insured for a predetermined period, such as 10, 20, or 30 years. If the insured survives the term, the coverage ends, and there is no payout; this is precisely why it is categorized as temporary protection.

The other options present characteristics that do not apply to level term insurance. For instance, the notion that premiums would fluctuate based on interest rates does not hold true, as level term insurance guarantees stable premiums over the life of the policy. Similarly, the idea of a policy endowing at age 100 typically relates to whole life insurance, not level term policies. Lastly, nonforfeiture values are features found in whole life policies, allowing policyholders to receive a benefit or cash value if they stop paying premiums, which does not apply to term insurance that lacks cash value components.