Question

which of the following best describes whole life insurance?
1 point
permanent protection with flexible premiums
permanent protection with fixed premiums and guaranteed cash value
temporary protection with fixed premiums
temporary protection with increasing death benefit
clear selection

adjustable life insurance is best described as a combination of which two policy types?
1 point
term and variable life
whole life and universal life
term life and whole life
whole life and variable life
clear selection

key person life insurance is most accurately defined as a policy that:
1 point
provides coverage to all employees of a business
insures a business against the loss of a key employee

Explanation:

1. For whole life insurance: It is a permanent policy with fixed premiums that builds a guaranteed cash value over time, distinguishing it from temporary or flexible-premium plans.
2. For adjustable life insurance: It combines the temporary coverage feature of term life and the permanent, cash-value feature of whole life, letting policyholders adjust terms.
3. For key person life insurance: This policy is designed to protect a business financially from the loss of a critical employee whose skills/leadership is vital to operations.

Answer:

1. Permanent protection with fixed premiums and guaranteed cash value
2. Term life and whole life
3. Insures a business against the loss of a key employee