Hilary is a 25-year-old female with limited financial resources and a four-year-old son. Ideally, she would like to purchase permanent insurance coverage, but her primary concern is making sure her son will be taken care of financially if she dies before he graduates from college. Given her current financial situation, she is interested in a term life insurance policy that will last 20 years. Hilary goes to an insurance broker to purchase a policy and is shown the following two rate tables to help her choose between annual renewable and level premium term life insurance. Given her age and desired policy term, she can purchase an annual renewahle torm life nnlirv and pay in the first year and a total of over the course of the policy. Alternatively, she can purchas rm life policy and pay a premium of year for a total of over the course of the policy. This example is representative of why, in general, people today purchase term life insurance