Compare term and whole life insurance by the need: test your skills
Term covers a set period at a lower cost; permanent policies add cash value at a much higher premium. Start with the need. Answer each question to see the explanation; your score appears at the end.
This test checks that you can
- Decide whether you need life insurance
- Compare term and permanent policies
- Estimate a coverage amount
- Practice
1. Term life insurance…
- Practice
2. Who usually needs life insurance most?
- Practice
3. Permanent policies typically have…
- Key idea
4. Which statement best explains "Need comes from dependants"?
- Key idea
5. Which statement best explains "Term matches temporary needs"?
- Key idea
6. Which statement best explains "Permanent is complex"?
- Action plan
7. In the action plan, which step comes first?
- Mistake to avoid
8. Which of these is a mistake this lesson warns against?
- Mistake to avoid
9. Which of these is a mistake this lesson warns against?
Income $50,000 for 12 years, mortgage $180,000, savings $70,000. Estimate the coverage need.
Show the answer
$710,000
$600,000 + $180,000 − $70,000 = $710,000.
Estimate how many years your household would need your income replaced.
More tests in this bootcamp
- Compare term and whole life insurance by the need
- Understand how disability insurance protects income
- See where umbrella liability insurance fits
- Understand what a will and living trust each do
- Choose who can act with powers of attorney
- Plan college savings with a 529 account
- Teach money skills with small choices and visible goals
- Final exam: Protection and estate planning