AD Banker Comprehensive Practice Exam

Who is most likely to purchase term insurance?

1. Roger, age 62, approaching retirement

2. Mary, 44 years old, with no children

3. George, in medical school with a child

4. Kathy, age 60, with two adult children

The correct answer is: George, in medical school with a child

Term insurance is designed primarily to provide coverage for a specific period, which is often aligned with the financial responsibilities that one has, such as raising children or paying off a mortgage. In this scenario, George stands out as the most likely candidate to purchase term insurance because he is in medical school and has a child, implying he has financial responsibilities that he would want to secure against the loss of his income. Term insurance is particularly appealing to parents or guardians of young children, as it ensures that there are sufficient funds to support dependents in the event of the policyholder's untimely death. George's situation highlights an immediate need for financial protection for his child, making term insurance the most suitable option for him at this stage of life. While the other individuals mentioned have their own life situations, they may not have the same pressing need for term insurance. For instance, Roger, approaching retirement, may be focusing on retirement funding rather than life insurance targeted towards dependents. Mary, with no children, might not see a significant need for life insurance to protect dependents. Kathy, with adult children, may no longer need term insurance in the same way, as her children are likely financially independent. Hence, George's status as a parent and student makes