Choose wisely. There is only one correct answer to each question.
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1.
If you receive a benefit from a term life insurance policy, you must use it only for basic living expenses.
False. You may use the benefit for anything you wish, not just basic living expenses.
2.
When are term life insurance premiums less expensive than those of whole life insurance?
In the early years of coverage. They then rise over the years and exceed those of whole life insurance.
3.
If you buy a term life insurance policy and invest the money that you would have otherwise spent on a whole life policy, who takes on the risk of this approach?
You. You must take on the investment risk yourself. But with a whole life policy, the insurance company takes on the investment risk.
4.
Which of the following does not factor into a term life insurance policy?
Cash buildup for you. Cash buildup is not a part of term life insurance. It is a part of whole 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.