Question

Y purchased $100,000 Worth of permanent on himself and $50,000 worth of 10-year term coverage for his wife on the same policy. Which of these policies did Y Purchase?

Answer 1

Y purchased a combination of whole life insurance for himself and 10-year term life insurance for his wife, combining permanent and short-term coverage within the same policy.

Step-by-step explanation:

Y purchased a combination of permanent and term life insurance coverage. Permanent life insurance, often called whole life insurance, provides a death benefit and also accumulates a cash value over time that the policyholder can use. In contrast, a term life insurance policy provides coverage for a specified term, such as 10 years, and does not have a cash value component.

In this scenario, the policy that Y purchased was likely a combination policy that included both permanent (whole) life insurance for himself at $100,000 and 10-year term life insurance for his wife at $50,000. These dual coverage policies cater to individuals with different insurance needs within the same family, offering both long-term investment benefits and short-term coverage.