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 requires her to make payments for the rest of her life, which is a characteristic of ordinary whole life insurance. This type of policy has a cash value that increases over time as premiums are paid, and the policy remains in force until the insured's death or age 100. Limited payment life insurance requires a set number of premium payments, while variable, adjustable, and universal life insurance policies allow for more flexibility in premium payments and often involve investment components.

Shelley Jackson Has a Life Insurance Policy Where She Makes