Asked by Alice Reeves on May 07, 2024
Verified
It is advisable to lock in a term life insurance policy rate at a young age because the cost of life insurance increases as a person ages.
Term Life Insurance Policy
A life insurance policy that provides coverage at a fixed rate of payments for a limited period of time, the relevant term.
Insurance Increases
An increase in the cost of an insurance premium, typically due to factors like higher risk or inflation.
- Gain an insight into the elementary concepts of insurance policies, notably term life insurance, and examine the fiscal repercussions for the insurer and the insured.
Verified Answer
ZK
Zybrea KnightMay 09, 2024
Final Answer :
True
Explanation :
The cost of life insurance increases as age increases due to higher risk of death as well as potential health issues that may arise. Locking in a lower rate at a younger age can save money in the long run.
Learning Objectives
- Gain an insight into the elementary concepts of insurance policies, notably term life insurance, and examine the fiscal repercussions for the insurer and the insured.
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