What would be considered an advantage of purchasing term life insurance quizlet?

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What would be considered an advantage of purchasing a term life insurance?
Which of the following is an advantage of term insurance?
What is the biggest advantage of term life insurance?
What is the most important advantage of buying term life insurance rather than whole life insurance?

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Planning #7 (static): Ethical Dilemma
Ethical Dilemma. Shortly after Steve graduated from college, he considered a whole life insurance policy that would provide $10,000 in life insurance protection and accumulate a cash value of twice his current annual income by age
65. Two years later, after Steve's marriage, he bought a second policy. Through his working years, he paid the $280 annual premium per policy. Steve kept remembering what the agent had told him many years before about each policy having a cash value double his annual income.
Steve was nearing age 65 and dug out the policies from his safety deposit box so that he could begin to put numbers together to plan his retirement. As he opened the two policies, he was appalled to see that the cash value on the older policy was $17,000 and on the newer policy was only $15,000. The two policies together amounted to only one-third his current annual earnings, far from the figure promised him by the agent.
a. Was the agent being unethical in not showing Steve the potential impact of inflation on the policies' cash value?
b. Taking just the first policy, would Steve have been better off to invest the $280 annual premium in a mutual fund that would have given an annual return of 8% per year (assume a 30-year investment period)?
a. The agent's failure to show Steve the potential impact of inflation on the policies' cash value was:

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What would be considered an advantage of purchasing a 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.

Which of the following is an advantage of term insurance?

Term insurance plans offer financial security for the entire family in case of the unfortunate death of the policyholder. Also, you can get optional coverage for critical illnesses or accidental death. You are covered for a long duration, while the premiums are affordable.

What is the biggest advantage of term life insurance?

Less expensive On average, life insurance rates are more affordable for term than whole life insurance because term policies offer coverage for a predetermined time. If you outlive the term and the policy expires, your beneficiaries don't receive the death benefit, so it's less of a risk to the insurer.

What is the most important advantage of buying term life insurance rather than whole life insurance?

Benefits of term life insurance More affordable than whole life insurance. Premiums stay the same during the level term period. Guaranteed death benefit amount.