Choose wisely. There is only one correct answer to each question.
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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.
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.
3.
The death benefit from a term life insurance policy can be turned into an annuity.
True. You can work with the insurance company to make this happen.
4.
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.
5.
The coverage period for annual renewable term life insurance goes _______.
Either for a certain number of years or up to a certain age. Coverage could be either of these, depending on how the policy is written.