Health and Life Insurance

Category - Annuities & Policies

What is one advantage of using term insurance?
  1. Term insurance can be flexible for the insured
  2. Term insurance is temporary protection
  3. Term insurance is death protection
  4. Term insurance is initially higher cost but decreases in time
Explanation
Answer: A - An advantage of using term insurance is that it is flexible for the insured. The purpose of term insurance is to provide additional protection for the insured and is often added to existing insurance as a rider. Term insurance has an initial low cost and as temporary protection will often be used to cover temporary needs like financial obligations. When life situations change, term insurance can provide coverage for those with limited resources to invest.
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