After taking an introductory course in insurance, your parents ask you what type of life insurance policy they should purchase to get permanent death protection with the option to pay more premiums some years, and less in other years. They also want a minimum guaranteed rate of return on their cash value. Which type of life insurance will you recommend?

Question

Quizplus · Accepted Answer

Universal life insurance allows for flexibility in premium payments and death benefits, making it a good fit for your parents' needs. They can pay more into the policy in years where they have extra income, and less in years when they need to conserve funds. Additionally, universal life policies offer a minimum guaranteed rate of return on the cash value, which is something your parents are looking for.

After Taking an Introductory Course in Insurance, Your Parents Ask