May$-$Yun, age $45,$ estimates that she needs to buy $$300,000$ in life insurance to protect her dependent children from suffering adverse financial consequences in the event of her death. As a single parent, she's on a pretty tight budget.

$($a$1)$

Will term or permanent life insurance be more appropriate to meet her needs right now?

Permanent

Term

Richard, age $35,$ is married and childless. He and his wife are both employed full time. He would like to have $$100,000$ in life insurance coverage and is interested in a policy that will also give him some low$-$risk investment earnings.

$($a$1)$

Should he consider term insurance?

He should consider term insurance.

He should not consider term insurance.

In choosing permanent life insurance policy, what is the most important factor?

Interest rate of cash$-$value account

Quality of the investment choices

Financial strength of the insurance company

Customer service

Nonforfeiture laws require that insurers must contract lapses. the permanent life insurance policy after a minimum number of years, if the

refund a fair amount of the cash value of

reinstate

provide a grace period for

allow for term conversion of