Choosing Appropriate Life Insurance

Sarah, a 40-year-old single mother with two dependent children, is looking for life insurance coverage to provide financial security for her family. She has a stable job with a salary of $80,000 per year, $50,000 in savings, and a mortgage balance of $250,000. Sarah wants a policy that offers the most affordable way to provide coverage until her children are financially independent.

Which type of life insurance is most appropriate for Sarah’s situation?

  1. Whole life insurance because it provides lifetime coverage and builds cash value.
  2. Term life insurance because it offers lower premiums and can provide coverage until her children are independent.
  3. Universal life insurance because it offers flexible premiums and potential for cash value growth.
  4. Variable life insurance because it allows her to invest in market-based sub-accounts for higher returns.