Question

1 point
which type of life insurance policy provides the greatest amount of coverage for the lowest initial premium?
whole life
universal life
variable life
term life
clear selection
1 point
which of the following policies is most appropriate for covering a mortgage obligation?
whole life
universal life
increasing term
decreasing term
1 point
a survivorship life policy differs from a join life policy in that it pays the death benefit:
at the first death
at the second death

Explanation:

1. For the first question: Term life insurance is a temporary policy that only provides a death benefit, no cash value component, so it has the lowest initial premium for high coverage. Whole, universal, and variable life have savings/investment components that raise initial costs.
2. For the second question: A decreasing term policy has a death benefit that declines over time, matching the decreasing balance of a mortgage obligation as it is paid down.
3. For the third question: A joint life policy pays out on the first death of the insured parties, while a survivorship life policy (second-to-die policy) pays the death benefit only after the second insured person passes away.

Answer:

1. Term life
2. Decreasing term
3. At the second death