Question

The option that provides an additional death benefit for a limited amount of time at the lowest possible cost is called a(n)

1) Term life insurance
2) Whole life insurance
3) Universal life insurance
4) Variable life insurance

Answer 1

Term life insurance provides an additional death benefit for a limited time at the lowest cost.

Step-by-step explanation:

The option that provides an additional death benefit for a limited amount of time at the lowest possible cost is Term life insurance.

Term life insurance is a type of life insurance that provides coverage for a specific period, typically 10, 20 or 30 years. It offers a death benefit to the beneficiaries if the insured individual passes away during the policy term.

Unlike other types of life insurance, such as whole life insurance or universal life insurance, term life insurance does not accumulate cash value and is designed to provide affordable coverage for a specific period of time.