Kayla buys a whole life policy when she is 40,and pays premiums on until she is 60. She decides to retire at 60,and has no dependents,no debts,and realizes she really doesn't need the death protection any longer. She is now concerned about generating a lifetime income during her retirement. What option does a whole life policy typically offer that could best help her with this financial need?

Question

Quizplus · Accepted Answer

The annuity conversion option allows Kayla to use the cash value of her whole life policy to purchase an annuity, providing her with a guaranteed income stream during retirement. This option is specifically designed to address Kayla's financial need for generating a lifetime income. Option A is not helpful as it only provides Kayla with the cash surrender value but doesn't address her need for generating a lifetime income. Option B allows Kayla to lower her face value, but it doesn't address her need for generating a lifetime income.

Kayla Buys a Whole Life Policy When She Is 40,and