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Tom, an accountant who prefers a stable financial plan, is considering life insurance options. What is his best choice for managing life insurance premiums? a) Term life insurance with level premiums. b) Whole life insurance with fluctuating premiums. c) Universal life insurance with adjustable premiums. d) Variable life insurance with investment-linked premiums.

1 Answer

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Final answer:

Tom should choose Term life insurance with level premiums as his best choice for managing life insurance premiums.

Step-by-step explanation:

Tom, the accountant who prefers a stable financial plan, should choose Term life insurance with level premiums as his best option for managing life insurance premiums.

Term life insurance provides coverage for a specific term or period, such as 10, 20, or 30 years, with level premiums that do not change throughout the term. This type of insurance offers a higher coverage amount for a lower premium compared to other types of life insurance.

Other options like Whole life insurance with fluctuating premiums, Universal life insurance with adjustable premiums, and Variable life insurance with investment-linked premiums may have higher premiums or more complex features that may not be suitable for Tom's preference for a stable financial plan.

Learn more about Managing life insurance premiums

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