Question

At age 30, an applicant wants to start an insurance program, but realizing that his insurance needs will likely change, he wants a policy that can be modified to accommodate those changes as they occur. Which of the following policies would most likely fit his needs?

1) Term life insurance
2) Whole life insurance
3) Universal life insurance
4) Variable life insurance

Answer 1

The most suitable insurance policy for the applicant who wants to accommodate changes in their insurance needs would be universal life insurance, which offers flexibility and the ability to modify the policy.

Step-by-step explanation:

If the applicant wants a policy that can be modified to accommodate changes in insurance needs, the most suitable policy for him would be universal life insurance. Universal life insurance offers flexibility and allows the policyholder to adjust the death benefit amount and premium payments as their needs change. It also includes a cash value component that can accumulate over time. Unlike term life insurance, which has a fixed term and does not build cash value, universal life insurance provides more flexibility and the ability to modify the policy.