The Wongs prefer whole life insurance because is will provide for their beneficiaries, regardless of how long they live, but they cannot afford the premiums for the full $1.1 million coverage they feel they need. What would be the best option for them?

Question

Quizplus · Accepted Answer

By purchasing an affordable amount of whole life insurance and a term rider, the Wongs can ensure that their beneficiaries will receive some coverage regardless of how long they live, while also providing additional coverage through the term rider. This option is likely more affordable than purchasing the full $1.1 million coverage solely through whole life insurance. Purchasing term insurance only may not provide the long-term coverage the Wongs desire, while creditor insurance and group life insurance may not provide sufficient coverage. Universal life insurance may be more expensive than whole life insurance and may not meet the Wongs' needs.

The Wongs Prefer Whole Life Insurance Because Is Will Provide