David and Eleanor are a young couple with two children, ages 2 and 3. David is in law school and currently has $80,000 in student loan debt. Eleanor works part-time at a software company earning $42,000 a year. Their current financial resources are limited; therefore, the savings components associated with some insurance policies would not be of much use to them at the moment (since their first priority is paying off loans). David expects to provide for his family as a lawyer in the future, however, and wants to ensure that they will be taken care of in the event of his premature death Because of the relatively low premiums and high face value, the best option for David is a insurance policy. life
After completing law school, David finds a job with a good law firm and wants to switch to a plan that provides a savings component as well.
He can achieve this without changing insurance companies as long as his original policy included a provision.
1. whole, term, universal
2. convertability, renewability, nonfeiture