Final answer:
Ten-pay life possesses the lowest initial annual premium. In general, out of the given options, a Modified life insurance policy usually starts with the lowest initial annual premium. .Option A is correct..
Step-by-step explanation:
Of the given options, Ten-pay life possesses the lowest initial annual premium. In general, out of the given options, a Modified life insurance policy usually starts with the lowest initial annual premium. However, premiums may increase over time. Policies like Ten-pay life and Whole life tend to have higher initial premiums due to their permanent coverage and cash value build-up, while Ten year endowment policies are even more expensive due to the endowment feature.
Whole life insurance is a type of permanent life insurance that offers both a death benefit and a cash value, which accumulates over time. This type of insurance generally has higher initial premiums compared to other types.
Modified life insurance is a variation of whole life insurance that has lower initial premiums, but also lower death benefits. Ten-year endowment and modified life insurance typically have higher initial premiums compared to ten-pay life insurances.