Karen is a young, single parent who realizes the need for life insurance. Unfortunately, she is struggling with budgeting because she is still in a low-paying job and supporting a young son. Which of the following policies would be the best choice given the duration of the need, the amount of the need and the cash flow situation?

Question

Quizplus · Accepted Answer

A 10-year renewable term policy is the best choice for Karen because she has a low budget and a temporary need for life insurance. The policy provides life insurance coverage for a specific period of time (10 years), and the premiums are affordable and level for the duration of the policy. This type of policy is ideal for someone like Karen who has a high need for coverage but may not have the disposable income to purchase a more expensive permanent policy.

Karen Is a Young, Single Parent Who Realizes the Need