1. When must an insurable interest exist in life insurance?

both at the time of death and at the inception of the policy

only at the inception of the policy

only at the time the beneficiary is paid

only at the time of death

2. All of the following are reasons supporting the “buy term life and invest the difference” EXCEPT

A wide variety of tax sheltered savings plans are available to most Americans.

Some insureds may be tempted to spend the money instead of consistently adhering to a disciplined savings program.

There are broader investment options available.

Term life policies can be easily compared on the basis of price.