Question

33 32 33 34 35 > 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 33 34 35 53 blake, age 42, believes in the importance of life insurance and understands how health problems could make it harder to obtain life insurance. for this reason, blake is looking to buy life insurance on his 6 - year - old son, life. whats important to blake is to obtain life insurance for his son now, but he does not want the coverage amount to be burdened by the payment of premiums once his son is old enough. which of the following policies would meet blakes objectives? a. 20 - year participating whole life without 109 b. t - 100 pay participating whole life with cash dividend option c. 20 - year pay participating whole life to age 65 with paid - up addition option d. 20 - year pay participating whole life with pua dividend option qm96wuxwwncomqwwpzowwbuut09? not yet answered

Explanation:

To solve this, we analyze each option based on life insurance features:

Step 1: Analyze Option a

A 20 - year non - participating whole life policy (like QMW96WUXWWNQKWOMPP7W9WBUTT09) has level premiums. But Blake wants to increase coverage over time without overburdening with premium increases now. Non - participating whole life doesn't have features to increase coverage in a way that matches his need, so this is not correct.

Step 2: Analyze Option b

A 20 - year participating whole life (T - 100) with a cash dividend option: Participating policies earn dividends. However, a cash dividend option just gives cash, not a way to increase coverage. Blake wants to increase coverage, so this is not suitable.

Step 3: Analyze Option c

A 100 - year paying participating whole life with a paid - up addition option: Paid - up additions (PUA) use dividends to buy additional small life insurance policies, which increase the overall death benefit (coverage) over time. The premiums are level, and as dividends are earned, they can be used to add coverage, which matches Blake's goal of increasing coverage without large premium hikes now.

Step 4: Analyze Option d

A 20 - year participating whole life to age 65 with a PUA dividend option: This policy is only for 20 years (or to age 65), but Blake is 42, and a 20 - year term (or to 65) won't provide coverage for his whole life (he wants life - long coverage as he believes in life insurance for life). Also, the term - like nature (ending at 65 or in 20 years) doesn't align with his need for life - long coverage with increasing benefits.

Answer:

c. 100 - year paying participating whole life with paid - up addition option