What is a common benefit of a Whole Life policy?

What is a common benefit of a Whole Life policy?

• A. Variable premiums over time
• B. Guaranteed death benefit
• C. No cash value accumulation
• D. Limited coverage duration

Answer: (B)

A Whole Life policy is designed to provide lifelong coverage with a consistent premium, and one of its key features is the guaranteed death benefit. This means that the policy will pay out a specific amount to the beneficiaries upon the policyholder's death, regardless of when that occurs, as long as the premiums have been paid. This predictable and guaranteed benefit is a major reason individuals choose Whole Life insurance, as it offers financial security and peace of mind that the loved ones will be taken care of financially in the event of the policyholder's passing. In the context of other options, Variable premiums over time do not apply to Whole Life policies, as they typically have fixed premiums. No cash value accumulation is incorrect because Whole Life policies accumulate cash value over time, which can be borrowed against or withdrawn. Additionally, Whole Life policies do not have a limited coverage duration; they remain in force for the lifetime of the insured as long as premiums continue to be paid.

A Whole Life policy is designed to provide lifelong coverage with a consistent premium, and one of its key features is the guaranteed death benefit. This means that the policy will pay out a specific amount to the beneficiaries upon the policyholder's death, regardless of when that occurs, as long as the premiums have been paid. This predictable and guaranteed benefit is a major reason individuals choose Whole Life insurance, as it offers financial security and peace of mind that the loved ones will be taken care of financially in the event of the policyholder's passing.

In the context of other options, Variable premiums over time do not apply to Whole Life policies, as they typically have fixed premiums. No cash value accumulation is incorrect because Whole Life policies accumulate cash value over time, which can be borrowed against or withdrawn. Additionally, Whole Life policies do not have a limited coverage duration; they remain in force for the lifetime of the insured as long as premiums continue to be paid.