The premiums for newly purchased cash-value policies are always higher than those for term policies providing the same amount of coverage.

Question

Quizplus · Accepted Answer

Cash-value policies provide both insurance coverage and savings components, whereas term policies only provide coverage for a specific term. As a result, the premiums for cash-value policies are generally higher than those for term policies providing the same amount of coverage.

The Premiums for Newly Purchased Cash-Value Policies Are Always Higher