Final answer:
To determine which policy would provide the greatest face amount of life insurance for a $25 monthly premium, we need to compare the different policies and their benefits. Based on these comparisons, the policy that would likely provide the greatest face amount of life insurance for a $25 monthly premium is Ordinary life (option C). However, it is important to consult with an insurance professional to determine the exact face amount and policy details.
Step-by-step explanation:
To determine which policy would provide the greatest face amount of life insurance for a $25 monthly premium, we need to compare the different policies and their benefits:
A. Five year term life: Term life insurance provides coverage for a specific period of time. With a limited premium payment term of five years, the face amount of the insurance for $25 per month will likely be lower compared to other options.
B. Ten pay life: This type of policy requires premium payments for a specified number of years, in this case, ten years. Since the premium payment period is longer than five-year term life, the face amount of life insurance for $25 per month might be higher.
C. Ordinary life: Ordinary life insurance, also known as whole life insurance, provides coverage for the entire lifetime of the insured. Although the premium payments are usually higher than term life or limited-pay life options, the face amount of life insurance for $25 per month could potentially be greater due to the extended payment period.
D. An endowment: An endowment policy is a type of life insurance that pays out the death benefit if the insured passes away within a specified period. Since the premium payments for an endowment policy are typically higher than other options, it is unlikely that a $25 per month premium would provide a significant face amount of life insurance.
Based on these comparisons, the policy that would likely provide the greatest face amount of life insurance for a $25 monthly premium is Ordinary life (option C). However, it is important to consult with an insurance professional to determine the exact face amount and policy details.