34
QuizMultiple Choice

Life Insurance — Quiz

Question 34 • Financial Math

What is an advantage of the term life insurance option?

Answer
A
It builds cash value over time.
B
It offers lifelong coverage.
C
It grows at a guaranteed interest rate of 3 percent.
D
It has a lower monthly premium.

Explanation

Term life insurance covers you for a set period and generally costs less than permanent life insurance. It does not build cash value or provide lifelong coverage, so the advantage is its lower monthly premium.

AI-written and checked against the verified answer.

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