23
QuizMultiple Choice

Life Insurance — Quiz

Question 23 • Financial Math

What is a disadvantage of the universal life insurance option?

Answer
A
It offers no death benefit.
B
It requires a higher monthly premium.
C
It provides a shorter coverage period.
D
It does not accumulate cash value.

Explanation

Universal life insurance includes a cash-value component and can provide lifelong coverage, so it generally costs more than term life insurance. Its higher monthly premium is a disadvantage. The other choices are incorrect because universal life offers a death benefit and accumulates cash value.

AI-written and checked against the verified answer.

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