Sarah, age 32, a new mother living in British Columbia, is looking for life insurance to cover her mortgage and provide for her child's education until she expects to be financially independent, roughly 20 years from now. She wants the lowest initial premium and the flexibility to continue coverage beyond 20 years if needed, without new medical examinations. Which type of policy would best suit her needs?

Question: Sarah, age 32, a new mother living in British Columbia, is looking for life insurance to cover her mortgage and provide for her child's education until she expects to be financially independent, roughly 20 years from now. She wants the lowest initial premium and the flexibility to continue coverage beyond 20 years if needed, without new medical examinations. Which type of policy would best suit her needs?

Answer options: ✅ 20-year Renewable and Convertible Term insurance

• Whole Life insurance with limited pay options
• Term-To-100 (T100) policy
• Universal Life insurance with a level cost of insurance

Correct answer: 20-year Renewable and Convertible Term insurance

Explanation: Renewable and Convertible Term 20 provides affordable coverage for her immediate 20-year need, with the option to renew without evidence of insurability or convert to permanent coverage later, aligning with her desire for flexibility beyond the initial term. This policy combines lowest initial premium with future options, as per the characteristics of common term insurance riders.