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Planning Intermediate: Choosing Life Insurance

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1.
If you are young and dont have much money to spend on life insurance, which is going to be more affordable for you?
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Term life insurance. Term is quite affordable for the young, though it rises in price as you age.
2.
Proceeds from a life insurance policy could be used to pay for your own funeral.
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True. This is one of the common uses for life insurance; a policyholders surviving dependents use the proceeds for the policyholders funeral costs.
3.
The cost of life insurance premiums is ultimately based on what type of table?
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Actuarial. Actuarial tables are tools used to project life expectancy.
4.
Many life insurance agents specialize in areas of financial planning that are related to life insurance in some way.
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True. Some specialize in estate planning, for example. A specialist can be valuable if you have specific needs in a life insurance policy.
5.
The financial soundness of a life insurance company matters to you because it affects the companys ability to pay your claims.
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True. Indeed, this is what insurance companies are in business for, and the healthier they are, the better they can pay claims.