Which of the following statements about life insurance is most true?
A) Insurance needs in early years are high
B) Today, the loss of a spouse is not likely to impact the family standard of living with or without life insurance
C) The Fed supervises insurance companies to see that they have the assets to cover likely claims in any given year
D) Term life insurance is the most complex form of insurance

Question

Quizplus · Accepted Answer

Insurance needs are typically highest in the early years of life when individuals have young children and large debts such as mortgages. As individuals age and their debts decrease and children become independent, their insurance needs may decrease. B is false as the loss of a spouse can still have a significant impact on a family's standard of living, especially if the spouse was the primary wage earner. C may be partially true, but the supervision of insurance companies is primarily the responsibility of state insurance departments, not the Fed. D is false as term life insurance is typically the simplest and most straightforward form of insurance.

Which of the Following Statements About Life Insurance Is Most