Answer: d. TERM LIFE
Explanation:
TERM LIFE INSURANCE
This type of insurance is also known as pure life insurance and is a type of life insurance that pays a stated benefit during a stated time. That is to say that if the policy holder does not die during the period of this policy, their beneficiaries get no payout. They are allowed to renew the policy upon death but their premiums will be recalculated based on their age at that time.
Term life premiums are usually lower than other forms of insurance because it only offers a death benefit and that benefit is restricted to a certain time.
It is worthy of note that insurers generally prefer this type of insurance because most policyholders outlive it.
Regardless, it is the cheapest policy out there and one that Rodney and Toni can invest in for the most protection with the least amount of money.
Group of answer choices:
A) continuous premium
B) universal life
C) paid up life
D) term life
E) variable life
Answer:
The correct answer is letter "D": term life.
Explanation:
Term Life Insurance is a policy with a limited period of coverage. Once a term life insurance policy has expired, it is up to the policyholder to decide whether to renew it or allow the coverage to expire. Term life plans are typically useful in case anything happens to the primary owner –sudden death most particularly– for younger people with families.
Their disadvantage is the lack of a savings component, but they are affordable, they provide clear benefits, and they are also easy to compare with other policies.
