What statement most accurately compares term and permanent life insurances?

A. Term life insurance last only for a finite amount of time and is more expensive than permanent life insurance

B. Term life insurance last only for a finite amount of time and is less expensive than permanent

life insurance

C. Permanent life insurance lasts for a finite period of time and is more expensive than term life insurance

D Permanent life insurance lasts for a finite period of time and is less expensive than term life insurance

Question

Skipper

Mathematics

2 May, 12:54

What statement most accurately compares term and permanent life insurances?

A. Term life insurance last only for a finite amount of time and is more expensive than permanent life insurance

B. Term life insurance last only for a finite amount of time and is less expensive than permanent

life insurance

C. Permanent life insurance lasts for a finite period of time and is more expensive than term life insurance

D Permanent life insurance lasts for a finite period of time and is less expensive than term life insurance

+4

Answers (1)

Know the Answer?

Skyler · Answer 1

The statement most accurately compares term and permanent life insurance (B.) Term life insurance last only for a finite amount of time and is less expensive than permanent life insurance.

Explanation:

Term Life Insurance as the name suggest is for a particular tenure or time period / tenure whereas the Permanent life insurance is the insurance that cover the entire life of the insurer and is for lifetime.

Since the term insurance is only for a certain time period it is comparatively less expensive than the permanent life insurance.

Also the premiums of term life insurance are lower than the permanent life insurance

hence we can say that

The statement most accurately compares term and permanent life insurance (B.) Term life insurance last only for a finite amount of time and is less expensive than permanent life insurance.