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.
When are term life insurance premiums less expensive than those of whole life insurance?
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In the early years of coverage. They then rise over the years and exceed those of whole life insurance.
3.
The death benefit from a term life insurance policy can be turned into an annuity.
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True. You can work with the insurance company to make this happen.
4.
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.
5.
The premiums for level term life insurance stay the same for _______.
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A certain term of years. That is why it is called "level term."