Check Your Understanding: Life Insurance Term Vs Permanent

1.

When do you need life insurance?

When you start working and earning an income.

If you're alive, you probably need life insurance.

When you have someone dependent on your income -- a child, spouse or elderly parent.

2.

Do you need life insurance for your kids?

Yes. It will help cover funeral expenses.

No. You're better off putting the money you would spend on premiums into a 529 plan to save for college.

Only if the child has an illness or special needs.

3.

What is permanent life insurance?

Life insurance that will stay in place until your death, as long as you pay the premiums.

Life insurance that transfers to your spouse after you die.

Life insurance that you purchase for children because it lasts a long time.

4.

What is term life insurance?

Term life is just a death benefit. There is no cash value, and it expires at the end of the set term.

Term life is a type of policy that combines an insurance product and an investment product into one.

Term life is life insurance you purchase during retirement.

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