You are considering the need for insurance. You desire a policy that provides permanent protection, has a fixed premium, and provides a fixed death benefit. What type of policy would you purchase?

Question

Quizplus · Accepted Answer

Whole life insurance provides permanent protection, a fixed premium, and a fixed death benefit. It also has a cash value component that grows over time, providing additional financial security and potential for investment. Term insurance is temporary coverage with a fixed period, and the premiums usually increase over time. Fixed premium insurance is not a specific type of insurance policy, but rather a feature that may be included in some types of policies. Universal life insurance has more flexibility in premium payments and death benefits, but it does not offer a fixed premium or death benefit.

You Are Considering the Need for Insurance