Josh, age 30, is a single father of one daughter, Nicole, age 11.

Josh works for an advertising agency with an annual income of $40,000. Due to his messy divorce and several student loans that drain his financial resources, Josh lives paycheck to paycheck.

His doctor recently discovered that he has high cholesterol and Josh is worried that his health may fail. He wants to purchase a life insurance policy to protect Nicole in the event of his untimely death (his employer does not yet offer a group plan). Assuming he wants to buy as much coverage as possible for the cheapest price, which of the following policies should he buy?

a. A whole life insurance policy.

b. A universal policy.

c. A single premium whole life policy.

d. A 20-year term insurance policy.