A whole life insurance policy is
A) a policy that covers you for your entire life.
B) a policy that covers all your insurance needs, including automobile, home, and life.
C) a policy that costs less than a term life policy.
D) a term life policy with a savings account.
E) a policy that makes you wait until you die to get financial rewards for your loved ones.

Question

Quizplus · Accepted Answer

An insurance policy that combines a term life policy and a savings account is called a whole life policy. This type of policy costs more than term life because the extra amount paid is invested by the insurance company and provides a guaranteed cash value to the policyholder. With this type of policy, you do not have to wait until you die to get some financial rewards.

A Whole Life Insurance Policy Is