Question

B just bought a new car, which he anticipates will be paid for 4 years from now. He also wants to buy a life insurance policy, but is financially limited until the car is paid off. Which of the following types of policies would be best for B?
1. Modified Life
2. Limited Term
3. Limited Pay
4. Interest-sensitive Whole Life

Answer 1

Answer:

1. Modified Life

Explanation:

The Modified Life insurance policy in which we have to pay the less amount or low amount of premium for the starting year just like three or five years

According to the given situation, B bought the new car and it is paid for 4 years from now plus he also wants to buy a life insurance policy but he is financially unstable

So, in this case,  the modified life or we can say the first option is appropriate as it contains the lowest premium amount