Question

value: 8
match the correct type of life insurance to the description.
a. you can increase or decrease your death benefit throughout the policy
b. provides a death benefit no matter how old you are, pays dividends
c. pays a benefit for a fixed number of years, least expensive type of life insurance
d. type of permanent life insurance but death benefit changes with the market rate

1. whole life insurance
2. universal life insurance
3. variable life insurance
4. term life insurance

Explanation:

• Universal life insurance offers flexible death benefit adjustments during the policy term.
• Whole life insurance is permanent coverage that lasts lifelong and often pays dividends to policyholders.
• Term life insurance provides coverage for a set period and is typically the lowest-cost life insurance option.
• Variable life insurance is a permanent plan where the death benefit fluctuates based on underlying market investment performance.

Answer:

a. 2. Universal life insurance
b. 1. Whole life insurance
c. 4. Term life insurance
d. 3. Variable life insurance