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1.
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.
2.
"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.
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.
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.
5.
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.