Erica Lares, a 38-year-old widowed mother of three children (ages 12, 10, and 4), works as a product analyst for Chase Bank. Although shes covered by a group life insurance policy at work, she feels, based on some rough calculations, that she needs additional protection. Sal Rodriguez, an insurance agent from AAA Insurance, has been trying to persuade Erica to buy a $150,000, 25-year, limited payment whole life policy. However, Erica favors a variable life policy. To further complicate matters, Ericas father feels that term life insurance is more suitable to the needs of her young family.

1. In what way is a whole life policy superior to either a variable life or term life policy? In what way is a variable life policy superior? How about term life insurance?
2. Given the limited information in the case, which type of policy would you recommend for Ms. Lares? Defend and explain your recommendations.