Shelley Jackson has a life insurance policy where she makes payments of $185 per year for the rest of her life.This policy has a cash value that increases while she continues to make payments.If she gives up her insurance,the cash value is the amount she would receive from this policy.What type of life insurance does Shelley likely have?

Question

Quizplus · Accepted Answer

Shelley's policy has a cash value that increases with her payments, which is a characteristic of whole life insurance policies. The fact that she pays a fixed premium amount for the rest of her life suggests that it is an ordinary whole life policy, rather than a limited payment life policy where premiums are paid for a limited number of years. Variable, adjustable, and universal life policies generally have more complex payment structures and investment components than described in the question.

Shelley Jackson Has a Life Insurance Policy Where She Makes