A fundamental decision to make when buying life insurance is whether to purchase term insurance or cash-value insurance.

Question

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This statement is true. Term insurance provides coverage for a specific period of time and does not have any cash value, while cash-value insurance, also known as permanent insurance, includes a savings component in addition to the death benefit. Choosing between the two types of insurance requires careful consideration of factors such as cost, coverage needs, and financial goals.

A Fundamental Decision to Make When Buying Life Insurance Is