A man wants to buy a life insurance policy in which he can count on guaranteed minimum benefits. Which type should he buy?

The correct choice is fixed life insurance. This type of policy guarantees a minimum benefit, ensuring that the policyholder has a reliable and predictable payout upon the occurrence of the insured event, typically death. Fixed life insurance policies often guarantee the death benefit and can also offer a guaranteed cash value accumulation over the life of the policy, making it an appealing option for someone seeking certainty and stability in their life insurance coverage.

In contrast, other types of policies may not provide these guaranteed benefits. For instance, a variable policy allows the policyholder to invest the cash value in various investment options, which can lead to fluctuating returns and benefits based on market performance. Although this can offer the potential for higher returns, it does not guarantee a minimum benefit, making it less suitable for someone who prioritizes stability. Level policies can describe the structure of the premiums or death benefit but do not inherently guarantee minimum values; instead, they have fixed premiums over time without the guarantees that a fixed policy provides. 'Solid' is not a recognized category in life insurance, leading to confusion in its application.

By understanding the characteristics and guarantees associated with fixed life insurance, the man can choose a policy that aligns with his need for guaranteed minimum benefits.