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 get a college education.Which of the following types of life insurance would best fit your needs at the lowest cost?

Question

Quizplus · Accepted Answer

The most suitable choice for this scenario is decreasing-term life insurance. As the name implies, the death benefit of this policy decreases over time, which makes it ideal for covering specific debts, such as a mortgage or college education savings. Therefore, the policy's face value gradually decreases as time goes on and the amount needed to fund the child's education decreases. Furthermore, decreasing-term life insurance is typically the most affordable option compared to other types of life insurance.

You Are Putting $100 a Month into a Passbook Savings