Assume that all of the life insurance policies listed below have a $50,000 face value,are sold by the same insurer,and have identical expense and mortality rates. Which of these,sold to a 27 year old female,should be the least expensive?

Question

Quizplus · Accepted Answer

Term life insurance policies typically have lower premiums than permanent policies (such as whole or universal life) for the same face value and insured's age because they only provide coverage for a specified term and do not accumulate any cash value. This makes term life the least expensive option for a 27-year-old female looking for a $50,000 face value policy from the same insurer with identical expense and mortality rates.

Assume That All of the Life Insurance Policies Listed Below