Differentiate term life and permanent life insurance and their typical uses.

Differentiate term life and permanent life insurance and their typical uses.

• A. Term life provides pure protection for a period; permanent builds cash value and lasts a lifetime.
• B. Permanent life lasts for life; term life is for a period of years only.
• C. Both are primarily used for investment growth.
• D. Term is for premiums only; permanent is optional.

Answer: (A)