Question

a prospect wants to buy life insurance with cash value but does not want to keep paying premiums after retirement. which of the following life insurance products would help achieve that goal? a. modified whole life b. limited pay whole life c. increasing term life d. variable life

Explanation:

Limited - pay whole - life insurance allows policyholders to pay premiums for a set period (e.g., 10, 20 years or until a certain age). After the premium - paying period is over, the policy remains in force for the insured's entire life and also accumulates cash value. This meets the prospect's requirement of having life insurance with cash value and not paying premiums after retirement. Modified whole - life has lower initial premiums but doesn't address the non - premium payment after retirement as directly. Increasing term life is pure life insurance without cash value in the traditional sense. Variable life requires continuous premium payments and has investment components.

Answer:

B. Limited pay whole life