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1.
"Buying term and investing the difference" means that you buy a term life insurance policy and invest money equal to the difference between a term and a whole life policy.
True. The aim of this strategy is to build up wealth equal to or greater than what you would with a whole life policy.
2.
If you reapply for a term life insurance policy whose coverage has expired, you are guaranteed the same premium you paid before.
False. Typically, you will pay more, and you may have to meet stricter requirements, too.
3.
The death benefit from term life insurance can be used for expenses such as _______.
All of the above. Benefits can be used for these expenses and more.
4.
Term life insurance provides coverage for a limited amount of time rather than your entire life.
True. That is why it is called term life insurance.
5.
Which of the following forms of term life insurance covers one year at a time?
Annual renewable term. Though it covers one year, it is allowed to renew.