question 54 of 60\na 35 - year - old insured has a life insurance policy with a death benefit of $150,000…

question 54 of 60\na 35 - year - old insured has a life insurance policy with a death benefit of $150,000. at the insureds age 65, the cash values of his policy will be $150,000. what type of policy does he have?\na. endowment to age 65\nb. life paid - up at 65\nc. whole life\nd. a 30 - year term

question 54 of 60\na 35 - year - old insured has a life insurance policy with a death benefit of $150,000. at the insureds age 65, the cash values of his policy will be $150,000. what type of policy does he have?\na. endowment to age 65\nb. life paid - up at 65\nc. whole life\nd. a 30 - year term

Answer

Brief Explanations:

An endowment policy pays the face - amount (death benefit) if the insured dies within a specified period or pays the cash value if the insured survives to the end of the endowment period. In this case, at age 65 (end of the relevant period), the cash value equals the death benefit of $150,000, which is characteristic of an endowment policy. A life - paid up at 65 would mean premiums are fully paid by 65 but doesn't necessarily mean cash value equals death benefit. Whole life policies build cash value over time but don't guarantee cash value equals death benefit at a specific age like this. Term policies have no cash value.

Answer:

A. Endowment to age 65