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Planning Beginner: Introduction to Term Life Insurance

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1.
Which of the following does not factor into a term life insurance policy?
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Cash buildup for you. Cash buildup is not a part of term life insurance. It is a part of whole life insurance.
2.
The death benefit from term life insurance can be used for expenses such as _______.
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All of the above. Benefits can be used for these expenses and more.
3.
The coverage period for annual renewable term life insurance goes _______.
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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.
Term life insurance premiums typically _______ as you age.
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Rise. Premiums rise because the risk of your death rises.
5.
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?
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You. You must take on the investment risk yourself. But with a whole life policy, the insurance company takes on the investment risk.