Sarah, age 35, has two young children, a mortgage of $400,000, and an annual salary of $80,000. Her husband also works but has significant student loan debt. They want to ensure their children's education and current lifestyle are maintained if Sarah unexpectedly passes away. Which type of life insurance is generally most suitable for Sarah's current needs?

Question: Sarah, age 35, has two young children, a mortgage of $400,000, and an annual salary of $80,000. Her husband also works but has significant student loan debt. They want to ensure their children's education and current lifestyle are maintained if Sarah unexpectedly passes away. Which type of life insurance is generally most suitable for Sarah's current needs?

Answer options: ✅ Term life insurance with a 20-year term

• Whole life insurance with a high cash value
• Universal life insurance with a level cost of insurance
• Participating whole life insurance

Correct answer: Term life insurance with a 20-year term

Explanation: Term life insurance is the most suitable option for Sarah's current needs because it provides a high death benefit for a specific period (while her children are dependent and the mortgage is outstanding) at a lower premium compared to permanent options, aligning with the temporary nature of these significant financial responsibilities.