Which option gives the maximum protection for someone with moderate means?

Term insurance provides the maximum protection for someone with moderate means because it offers high coverage amounts at relatively low premium rates. This makes it an economical choice for those who seek significant life insurance protections without straining their budget. Term life insurance typically covers a specified period, such as 10, 20, or 30 years, during which the policyholder pays lower premiums compared to whole life insurance. If the insured passes away during the term, the beneficiaries receive the death benefit, which can provide vital financial support for dependents or cover debts.

This is particularly beneficial for individuals with moderate means who may need substantial protection due to dependents or financial responsibilities, but may not have the capacity to afford the higher premiums associated with permanent life insurance solutions like whole life or limited pay life.

While a 20-year endowment policy can provide a death benefit or a maturity benefit, it often combines savings and insurance components, leading to higher premiums. Limited pay life requires higher payments for a shorter duration, which may not be suitable for those with tighter budgets. Whole life insurance, similar to limited pay life, offers lifelong coverage but also comes with higher premiums due to its cash value accumulation and lifelong nature. Therefore, for maximizing protection while managing costs effectively, term insurance