Your clients, Jack and Samantha are 28 and 26, respectively. Samantha just gave birth to the couple's first child, a daughter, three months ago. Neither has much investment experience and they are both conservative in respect to risk. They come to you for advice regarding a life insurance policy-one that would help provide financial resources should anything happens to either of them. Which of the following policies would be the least suitable given their situation?

Question

Quizplus · Accepted Answer

Variable life policies have investment components, which carry risk, and may not be suitable for clients who are conservative in their risk tolerance. A 10-year renewable term policy may be the most suitable option for clients who are looking for coverage in case anything happens to either one of them. The whole life policy and universal life policy may provide additional benefits, such as a savings component or flexible premium options, but may also have higher fees and costs associated with them. A first-to-die policy would be appropriate if the clients only wanted coverage for a specific number of years or until one partner passed away.

Your Clients, Jack and Samantha Are 28 and 26, Respectively