What is true about whole life insurance?
Whole life insurance provides a guaranteed benefit upon the death of the insured, regardless of when they die. This offers a clear advantage over term life insurance, which only pays out if the death occurs within a specific time frame. However, whole life insurance also has significantly higher costs.
What is a whole life insurance policy quizlet?
whole life insurance. provides guarantee death benefit protection for insured's entire life span. No matter when the insured dies, the policy pays the face amount. whole life insurance. guaranteed cash value that gradually builds inside the policy.
Which statement is true regarding a Variable Whole Life policy quizlet?
Which statement is TRUE regarding a Variable Whole Life policy? A minimum guaranteed Death benefit is provided.
What are the main features of whole life insurance?
Whole life insurance\n\n Compared to other forms of permanent coverage, a whole life policy has three defining characteristics: The level premium remains the same for life. The death benefit is guaranteed as long as the guaranteed premiums are paid. The policy includes guaranteed cash values that grow at a guaranteed rate.
What are the characteristics of whole life insurance?
how the policy's cash values are invested and grown. The most basic type of whole life insurance is called either ordinary whole life or straight whole life policy. With whole life, benefits and premiums remain level straight through the insured's whole life.
What is the cash value of a whole life policy?
The cash value forms part of the death benefit, but it is also accessible while the insured is alive. The cash value is covered more thoroughly later in this lesson. how the policy's cash values are invested and grown. The most basic type of whole life insurance is called either ordinary whole life or straight whole life policy.
When does an insured accept delivery of a whole life policy?
On January 3, an insured accepts delivery of a whole Life policy that has an effective date of December 22 of the previous year. The policy contains a six-month Waiver of Premium provision. If the insured becomes disabled on January 6 as the result of an accident, and the disability continues beyond July 6, the insurance company will: a.