26
QuizMultiple Choice

Life Insurance — Quiz

Question 26 • Financial Math

What is an advantage of the term life insurance option?

Answer
A
It offers a guaranteed interest rate on the cash value.
B
It provides lifetime coverage.
C
It requires a lower monthly premium.
D
It accumulates cash value.

Explanation

Term life insurance covers you for a set period and generally costs less than permanent life insurance, so its premiums are lower. It does not build cash value or provide lifetime coverage, and it does not guarantee interest on cash value.

AI-written and checked against the verified answer.

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