Which statement correctly contrasts term life and permanent life insurance?

Which statement correctly contrasts term life and permanent life insurance?

• A. Term policies accumulate cash value over time; permanent policies do not.
• B. Term provides coverage for a specified term with little or no cash value; permanent provides lifetime coverage with a cash value component and higher premiums.
• C. Term premiums are fixed for the entire policy term.
• D. Term coverage is always more expensive than permanent.

Answer: (B)