Which statement is accurate regarding permanent life insurance policies?

Which statement is accurate regarding permanent life insurance policies?

• A. They expire after a specific term
• B. They provide lifelong coverage
• C. They only cover natural causes of death
• D. They are typically less expensive than term policies

Answer: (B)

Permanent life insurance policies are designed to provide lifelong coverage, distinguishing them from term life insurance, which only offers protection for a specified period. This means that as long as the premiums are paid, the policy remains in force for the insured’s entire lifetime, ultimately leading to a payout upon death, regardless of when it occurs. Additionally, permanent policies often accumulate a cash value over time, which can be accessed by the policyholder, adding to their long-term financial benefits. The other statements do not accurately reflect the nature of permanent life insurance. While term policies have a defined duration and expire after a set term, permanent policies are structured to last indefinitely. Furthermore, permanent life insurance covers a wide range of causes of death, not just natural causes, ensuring comprehensive protection for the insured. Lastly, in terms of cost, permanent policies typically have higher premiums compared to term policies due to their lifelong coverage and the cash value component.

Permanent life insurance policies are designed to provide lifelong coverage, distinguishing them from term life insurance, which only offers protection for a specified period. This means that as long as the premiums are paid, the policy remains in force for the insured’s entire lifetime, ultimately leading to a payout upon death, regardless of when it occurs. Additionally, permanent policies often accumulate a cash value over time, which can be accessed by the policyholder, adding to their long-term financial benefits.

The other statements do not accurately reflect the nature of permanent life insurance. While term policies have a defined duration and expire after a set term, permanent policies are structured to last indefinitely. Furthermore, permanent life insurance covers a wide range of causes of death, not just natural causes, ensuring comprehensive protection for the insured. Lastly, in terms of cost, permanent policies typically have higher premiums compared to term policies due to their lifelong coverage and the cash value component.