Which of the following statements about the ‘Life Insurance’ section of the lecture material are TRUE:

1. Death cover pays a lump-sum amount upon death. The amount of death cover that most people need should normally increase between the ages of 20 and 60 (with the most needed at age 60).
2. If someone takes out $1 million in ‘Death and TPD cover’, then they will be paid a lump-sum of $1 million upon either death or total and permanent disability. One possible problem with TPD insurance is about the definitions of what constitutes ‘total and permanent disability’.