Types of Policies
Which feature is ordinarily associated with a nonparticipating whole life policy?
Answer and explanation
Answer: B. For nonparticipating whole life, the insurer sets the premium, death benefit, and cash value at issue, and the policy does not pay dividends. A falling death benefit describes decreasing term, while owner-selected funds are associated with variable products.Source: NAIC — Life Insurance — Whole Life Insurance > Types of whole life insurance > Nonparticipating whole life insurance policy
More types of policies questions
- A 20-year term policy permits conversion only during its first 12 years. Which statement correctly describes the feature?
- A 45-year-old buys an annuity intending to take income at 65. Which annuity classification describes the contract during those twenty years?
- A buyer wants a deferred annuity funded entirely with one lump-sum purchase payment. Which funding form should be selected?
- A buyer wants lifetime life insurance funded by one lump-sum payment and wants cash value available immediately. Which policy fits?
- A buyer wants permanent coverage whose credited values respond more quickly to current interest-rate changes than traditional whole life. Which product is the closest match?
- 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?
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