8
QuizMultiple Choice

Life Insurance — Quiz

Question 8 • Financial Math

What is a disadvantage of the whole life insurance option?

Answer
A
It has a higher monthly premium.
B
It offers limited coverage.
C
It does not accumulate cash value.
D
It provides a lower death benefit.

Explanation

Whole life insurance typically costs more each month than term life insurance because it provides lifelong coverage and builds cash value. Therefore, a higher monthly premium is a disadvantage. Choice C is incorrect because whole life insurance does accumulate cash value.

AI-written and checked against the verified answer.

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