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.
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.
3.
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.
4.
"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.
5.
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.