Which of the following is an advantage of whole life insurance over term life insurance?
Whole life provides many benefits compared to a term life policy: it is permanent, it has a cash value investment component, and it provides more ways to protect your family's finances over the long term.
What is one advantage of whole life insurance policies over term life insurance policies apex?
Term coverage only protects you for a limited number of years, while whole life provides lifelong protection—if you can keep up with the premium payments.
What are the 3 advantages of whole life insurance?
Whole life insurance builds cash value, provides permanent coverage, and can help build your family's wealth over the long term. These policies also offer more guarantees than other types of coverage, making them an option to consider for many people.
Which of the following is an advantage of term life insurance?
Term life insurance offers temporary financial protection — usually five to 30 years — for a low, fixed cost. This type of life insurance is best for meeting short-term financial needs, like paying off debts, replacing your income, covering childcare costs and funding your child's education.
What is whole life insurance and how does it work?
The main purpose of life insurance is to provide for your loved ones when you die. Whole life insurance does that, and also becomes a cash asset over time. But it might be years before you’ll be able to make the most of its living benefits. These are the main perks of taking out a whole life insurance policy: It provides lifelong protection.
What are the disadvantages of a whole life insurance policy?
A disadvantage of whole life policies is that A) the premiums are not predictable. B) they are much more expensive than term policies. C) the face value of the policy can change over time. D) the cash value is frozen and not available to policyholders.
What happens to the cash value of a whole life policy?
The problem with the cash value build up of a whole life insurance policy is that the money can only be used to pay off the policy or buy additional insurance. (true/false)