Discussion Question
Answer according to the situation below. Please explain your answer clearly:
Phil Simpson has decided that the lowest-premium form of life insurance is definitely the best buy. Consequently, he has purchased a $250,000 yearly renewable term life insurance policy as his only life insurance.
a. Explain why you agree or disagree with Phil's philosophy.
b. Will his decision have any possible adverse effects in later years?
c. Are the any realistic alternatives available to him without making premiums too high at a young age?