Sarah is a 35-year-old single parent with two young children. She has a mortgage of $350,000, no other significant debts, and wants to ensure her children are financially protected until they complete post-secondary education, which is estimated to be approximately 20 years away. She is very budget-conscious. Which type of life insurance policy is generally most suitable for Sarah's current needs?

Question: Sarah is a 35-year-old single parent with two young children. She has a mortgage of $350,000, no other significant debts, and wants to ensure her children are financially protected until they complete post-secondary education, which is estimated to be approximately 20 years away. She is very budget-conscious. Which type of life insurance policy is generally most suitable for Sarah's current needs?

Answer options: ✅ Term-20 life insurance with a critical illness rider.

• Whole life insurance with a guaranteed cash value and dividends.
• Universal life insurance with a level cost of insurance.
• Joint first-to-die whole life insurance.

Correct answer: Term-20 life insurance with a critical illness rider.

Explanation: Term life insurance is typically the most suitable option for specific, temporary needs like covering a mortgage or providing income during children's dependency years, especially when budget is a primary concern. A Term-20 policy aligns with her 20-year need.