Which of the following is a correct statement about life insurance policy types?
A. Group life insurance is offered only to employees who provide evidence of insurability B. The initial premium for term insurance is lower than the initial premium for whole life insurance C. Limited payment whole life policies stay in effect only for as long as the premium is paid D. Universal life policies have a structured premium payment schedule that must be followed during the entire contract period
These four life insurance policy types must be sold with the following cautions. Term insurance covers you for an agreed period of time. When that expires, you are not covered. Whole of life insurance is generally more expensive for it covers you whenever you might die.
However, there are cheaper such policies when the insured is elderly. Group insurance is designed for cover of a group with certain characteristics in common. Company insurance does allow for the fact that some members will have sub-standard health, but the whole group is covered-- a great benefit, usually only given to the well-paid.