Question 1002 of 287 · Texas Life, Accident and Health Agent Exam
A limited-pay whole life policy differs from ordinary whole life because the
Exactly one answer is correct.
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Correct answer to question 1002
- C: premiums are payable for a shorter period while coverage continues for life
Explanation
In a limited-pay policy the premium-paying period (for example 20 years or to age 65) is shorter than the coverage period. Coverage stays in force for the insured's whole life, so the annual premium is higher than for ordinary whole life.
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