Whole life insurance premiums provide the insured with both pure insurance and a savings plan.

Question

Quizplus · Accepted Answer

Whole life insurance policies have a cash value component, which allows for savings accumulation in addition to providing a death benefit for the insured. This cash value grows tax-deferred and can be accessed by the policyholder in the form of loans or withdrawals. Therefore, whole life insurance premiums provide both pure insurance and a savings plan.

Whole Life Insurance Premiums Provide the Insured with Both Pure