Most family heads need substantial amounts of life insurance.However,with limited income,money spent on life insurance reduces the amount of discretionary income available for other high-priority needs.What an insured person gives up when he or she purchases life insurance instead of using the premium dollars for other purposes is called the

Question

Quizplus · Accepted Answer

The term "opportunity cost" refers to what an insured person gives up by purchasing life insurance instead of using the premium dollars for other high-priority needs. This is the best choice because it accurately describes the concept mentioned in the question. The other answer choices are not as fitting, as they do not fully capture the meaning of the trade-off involved in purchasing life insurance.

Most Family Heads Need Substantial Amounts of Life Insurance