Final answer:
The subject of this question is insurance, and the correct answer is term insurance.
Step-by-step explanation:
The subject of this question is Insurance. The question asks about the type of insurance that, on average, runs about 1/20th the cost of whole life / cash value insurance. The correct answer is a) Term insurance.
Term insurance is a type of life insurance that provides coverage for a specific period of time, typically 10, 20, or 30 years. It does not have any cash value component, which is why it is generally less expensive than whole life insurance.
For example, if the premium for a whole life insurance policy is $1,000 per year, the premium for a term insurance policy with the same death benefit might be $50 per year.