You are putting $100 a month into a passbook savings account to pay for your child's college education. You worry that if you die before you have enough saved, your child will not be able to afford a college education. Which of the following types of life insurance would best fit your needs at the lowest cost?

Question

Quizplus · Accepted Answer

Decreasing-term life insurance is the most cost-effective option for this specific need. It provides coverage that decreases over time, typically matching the decreasing obligation or need for coverage, such as the diminishing balance on a mortgage or, in this case, the decreasing amount needed as you continue to save for your child's college education. This type of insurance is less expensive than whole, universal, or variable life insurance, making it the best fit for ensuring your child can afford college if you die before saving enough, at the lowest cost.

You Are Putting $100 a Month into a Passbook Savings