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. pays a benefit for a fixed number of years, least expensive type of life insurance
c. type of permanent life insurance but death benefit changes with the market rate
d. provides a death benefit no matter how old you are, pays dividends

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

Explanation:

• a: Universal life insurance offers flexible death benefit adjustments.
• b: Term life insurance covers a fixed term and is low-cost.
• c: Variable life insurance is permanent, with benefits tied to market performance.
• d: Whole life insurance is lifelong and often pays dividends.

Answer:

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