Question

Y purchased 100,000 worth of permanent protection 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?

1) Permanent protection
2) 10 year term coverage
3) Both permanent protection and 10 year term coverage
4) None of the above

Answer 1

Y purchased both permanent protection for himself and 10-year term coverage for his wife, which corresponds to option 3) Both permanent protection and 10 year term coverage.

Step-by-step explanation:

To address the student's question, the policy that Y purchased would be considered both permanent protection and 10-year term coverage. Specifically, Y obtained permanent (or whole) life insurance for himself with a coverage amount of $100,000 which is a type of life insurance that provides coverage for the life of the insured.

Additionally, Y purchased a 10-year term life insurance policy for his wife with coverage of $50,000; this is a type of life insurance that provides coverage for a specified term of years and expires without value if the insured survives the term. Hence, the correct answer would be option 3).