The correct answer is B. Term insurance can be taken as a standalone policy or as a rider on another policy.
A term insurance policy is a type of life insurance policy that provides coverage for a specified period of time, usually 10, 15, or 20 years. If the insured person dies during the term of the policy, the death benefit is paid to the beneficiaries. If the insured person survives the term of the policy, no benefits are paid.
Term insurance can be purchased as a standalone policy or as a rider on another policy. A standalone policy is a stand-alone contract between the insured person and the insurance company. A rider is an add-on to another type of insurance policy, such as a whole life insurance policy or a universal life insurance policy.
There are several advantages to purchasing term insurance as a standalone policy. First, standalone policies are typically less expensive than riders. Second, standalone policies offer more flexibility in terms of the length of the term and the death benefit. Third, standalone policies are not subject to the same surrender charges as riders.
There are also several advantages to purchasing term insurance as a rider. First, riders can be added to existing life insurance policies, which can make them a more affordable option for people who already have life insurance. Second, riders can provide additional coverage for specific needs, such as disability income protection or long-term care. Third, riders can be used to supplement the death benefit of an existing life insurance policy.
Ultimately, the best way to purchase term insurance is to speak with a financial advisor to determine which option is right for you.