A client needs substantial protection but has limited financial resources. Which insurance policy would best meet their needs?

The best choice for a client who needs substantial protection but has limited financial resources is Term Life insurance. Term Life policies are designed to provide a high death benefit for a lower premium compared to other types of life insurance. This is particularly beneficial for clients who may need significant coverage but might not have the budget to pay higher premiums associated with permanent policies like Whole Life or Variable Life.

Term Life insurance covers the insured for a specific period, typically ranging from 10 to 30 years, and it pays a death benefit if the insured passes away during that term. Because there is no cash value component, the premiums are generally much lower, allowing clients to secure the necessary coverage without straining their finances.

This is opposed to Whole Life and Universal Life, which offer lifelong coverage and include a savings or investment component but come with higher premiums. Variable Life also offers lifelong coverage with investment options, but its costs can fluctuate significantly depending on the performance of those investments, which might not be suitable for someone with limited financial resources. Therefore, Term Life provides the most effective solution for someone looking for substantial coverage within a restricted budget.