4
AssignmentMultiple Choice

Buying and Selling Stock

Question 4 • FL-2102373-Personal Finance and Money Management Honors

Which statement best compares the benefits offered by term-life insurance and whole-life insurance?

Answer
A
Both types of insurance can be used for the education of the beneficiaries.
B
Both types of insurance offer coverage for the rest of the policyholder’s life.
C
Only term-life insurance policies often have a cash-value that can be borrowed against.
D
Only whole-life insurance policies can be used for paying debts and business expenses.

Explanation

Both term-life and whole-life insurance pay a death benefit to beneficiaries, which they can use for purposes such as education. Term-life coverage lasts for a set period, while whole-life coverage can last for the policyholder’s lifetime, so B is incorrect. Cash value is associated with whole-life policies, not term-life policies, and either type’s death benefit can help pay debts or business expenses.

AI-written and checked against the verified answer.

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