Types of Policies
How is single-premium whole life ordinarily funded?
Answer and explanation
Answer: C. Single-premium whole life is purchased with one lump-sum payment and provides lifetime protection with immediate cash value. The other choices describe recurring or flexible payment patterns rather than a single-premium design.Source: NAIC — Life Insurance — Whole Life Insurance > Types of whole life insurance > Single premium whole life insurance
More types of policies questions
- What happens to the cash value in a decreasing term life policy as the face amount approaches zero?
- What happens to the cost of an increasing term benefit as the insured ages and the coverage amount rises?
- What immediate cash feature distinguishes a single-premium whole life policy from an ordinary whole life policy?
- What indexed feature defines a Fixed Indexed Annuity (FIA)?
- What is an immediate annuity (SPIA) designed to do upon single-premium purchase?
- What key feature distinguishes a variable annuity from a fixed annuity?
590 Texas questions like this one.
Every answer explained, the ones you miss come back on a spaced schedule, and a plan built from your exam date.