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1.
Which of the following scenarios describes how premiums typically behave in a term life insurance policy?
Premiums rise as you age. Premiums rise due to the probability of your death increasing as you grow older.
2.
The premiums for level term life insurance stay the same for _______.
A certain term of years. That is why it is called "level term."
3.
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.
4.
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.
5.
"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.