Types of Policies
A buyer wants permanent life insurance and wants the scheduled premium obligation to end at age 65 while coverage can continue for life. Which policy design fits?
Answer and explanation
Answer: C. Limited-payment whole life is permanent coverage with premiums compressed into a shorter payment period, while lifetime coverage can continue after scheduled premiums are completed.Source: National Association of Insurance Commissioners — Life Insurance — Whole Life Insurance > Limited payment whole life insurance: premiums paid over a shorter time while coverage lasts a lifetime
More types of policies questions
- What is an immediate annuity (SPIA) designed to do upon single-premium purchase?
- What key feature distinguishes a variable annuity from a fixed annuity?
- What primary guarantee is provided to the owner of a fixed annuity contract during the accumulation phase?
- What primary need is decreasing term life insurance specifically designed to cover?
- What surrender charge feature is common in fixed annuity contracts during early policy years?
- What type of annuity is purchased with a single lump-sum payment and defers payouts until a specified future date?
590 Texas questions like this one.
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