Question

What statement is true for life insurance coverage?
a. The policy only covers beneficiary's future needs; funeral costs should not be included in the policy amount.
b. Debt is forgiven at death, so insurance policies do not need to cover this cost.
c. Life insurance policy amounts should factor in how much it would take to maintain the standard of living for the beneficiaries.
d. Generally speaking, $10,000 is the recommended amount for a life insurance policy.

Answer 1

c. Life insurance policy amounts should factor in how much it would take to maintain the standard of living for the beneficiaries.