Question 1001 of 287 · Texas Life, Accident and Health Agent Exam

Which feature is characteristic of ordinary (straight) whole life insurance?

Exactly one answer is correct.

AIt provides lifetime protection with level premiums and a guaranteed cash value
BIt provides protection for a set number of years with premiums that rise at each renewal
CIt pays a benefit only if the insured survives to the end of a stated period
DIt allows the owner to vary the death benefit with no effect on the cash value

Show solution

Correct answer to question 1001

A: It provides lifetime protection with level premiums and a guaranteed cash value

Explanation

Whole life is permanent coverage with a level premium, a guaranteed death benefit, and a cash value that builds on a fixed schedule. The other descriptions fit term, pure endowment, and flexible universal life features.

1002A limited-pay whole life policy differs from ordinary whole life because the
1003A single-premium whole life policy is purchased by
1004Which statement about universal life insurance is correct?
1005In a universal life policy, the cash value is reduced each month by
1006Who bears the investment risk in a variable life insurance policy?
1007To sell variable life insurance or variable annuities in Texas, an agent needs

Which feature is characteristic of ordinary (straight) whole life insurance?

Correct answer to question 1001

Explanation

More questions: Life: Types of Policies