Final answer:
For Joe, a 33-year-old with long-term affordability concerns, Level-premium term life insurance is recommended. This policy offers fixed premiums throughout the term, ensuring budget consistency without the higher costs of whole-life insurance. Thus, the option B is the correct answer.
Step-by-step explanation:
Joe, who is 33 years old, married, and has a newborn son, is looking for life insurance that's affordable over the long term yet fits within a fixed budget for a period of time. The recommended policy for Joe would likely be a Level-premium term life insurance. This type of policy guarantees that Joe will pay the same premium throughout the term of the policy, combining both affordability and the benefit of fixed budgeting. It does not have a cash value component, unlike whole life insurance, which offers both a death benefit and a cash value but usually comes with higher premiums. Annually renewable term insurance might initially be less expensive, but the premium could increase each year, making it less predictable over the long term. A single-premium annuity is geared more towards retirement income and is not suitable for Joe's concern about providing for his family in the case of his premature death.