Question

Q would like to purchase $100,000 of permanent protection on his wife and $50,000 of Term coverage on himself under the same policy. What kind of policy should Q purchase?

A.Joint policy
B.Joint survivor policy
C.Whole life policy with other insured rider
D.Whole life policy with a Guaranteed Insurability option

Answer 1

A Whole life policy with other insured rider is best for Q who wants $100,000 permanent protection for his wife and $50,000 term coverage for himself. This type of policy combines both permanent and term coverages under one policy, with additional benefits such as cash value accumulation.

Step-by-step explanation:

If Q would like to purchase $100,000 of permanent protection on his wife and $50,000 of Term coverage on himself under the same policy, the most appropriate type of policy would be a Whole life policy with other insured rider. This combination allows Q to have permanent life insurance coverage for his wife along with a term rider that provides temporary coverage for himself, all within one policy.

Cash-value (whole) life insurance has both a death benefit and a cash value component which serves as an account that can be used during the life of the policy. By adding the other insured rider, Q can ensure that both he and his wife have the appropriate levels of insurance they need under one consolidated policy.