39
QuizMultiple Choice

Life Insurance — Quiz

Question 39 • Financial Math

What is a disadvantage of the term life insurance option?

Answer
A
It offers guaranteed investment growth.
B
It requires higher premiums.
C
It provides lifetime coverage.
D
It does not accumulate cash value.

Explanation

Term life insurance provides coverage for a specified period, but it generally does not build savings or cash value. Therefore, “It does not accumulate cash value” is a disadvantage of this option. The other statements describe features that term life insurance typically does not offer, or a cost advantage rather than a disadvantage.

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