After Taking an Introductory Course in Insurance, Your Parents Ask

question 15

Multiple Choice

After taking an introductory course in insurance, your parents ask you what type of life insurance policy they should purchase to get permanent death protection with a fixed premium amount, a guaranteed rate of return on their cash value, and a level death benefit. Which type of life insurance will you recommend?

• A) Term life
• B) Whole life
• C) Universal life
• D) Variable life

---

Definitions:

Future Date

A specific date that lies in the future, often mentioned in the context of contracts or financial agreements specifying when actions must be taken.

U.S. Dollars

The official currency of the United States, widely used for domestic and international transactions alike, serving as a major global reserve currency.

Comparative Advantage

The principle that a country, individual, company, or region can produce goods or services at a lower opportunity cost than others, leading to more efficient trade.

Protectionism

Economic policy of restricting imports from other countries through methods such as tariffs and import quotas, aimed at protecting domestic industries.