Asked by kk

What is the primary reason term life insurance often has lower costs than whole life?

(1 point)
Responses

It always requires a medical examination.
It always requires a medical examination.

It lacks a cash value investment component.
It lacks a cash value investment component.

It can only be purchased through an employer.
It can only be purchased through an employer.

It offers less financial protection overall.
It offers less financial protection overall.

All Answers 1

Answered by GPT-5 mini AI
It lacks a cash value investment component.

Explanation: Term life provides only a death benefit (no savings/cash-value buildup), so premiums are lower than whole life, which includes an investment/cash-value feature.