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Which of the following term life insurance policies would have the lowest 1st-year annual premium, all other factors being equal? A 1-year B 5-year C 15-year D 10-year

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Final Answer:

The term life insurance policy with the lowest 1st-year annual premium, assuming all other factors are equal, would be option A) 1-year.

Step-by-step explanation:

Term life insurance policies offer coverage for a specified period, and the premium is generally lower for shorter-term policies. In this case, a 1-year term policy would have the lowest 1st-year annual premium among the given options (A, B, C, and D). The shorter the term, the lower the risk for the insurance company, resulting in lower initial premiums.

Option A (1-year) is preferred when individuals seek coverage for a very short duration, and they anticipate the need for coverage only for a brief period.

Option A is the answer.

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