Henry must make set premium payments on his insurance policy until he dies,and if he cancels the policy he will receive the cash value.His plan is a ____ life policy.

Question

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A whole life policy requires the insured to make set premium payments until they die, at which point the death benefit is paid out to the beneficiary. Canceling the policy before death may result in receiving the cash value, but it will likely be less than the total amount of premiums paid. Term life policies are for a specific term and do not accumulate cash value. Limited payment policies a limited period of premium payments while providing benefits until the policyholder dies. Universal life policies offer the policyholder flexibility in the amount and frequency of premium payments. None of the above policies fit the description of Henry's policy as well as whole life.

Henry Must Make Set Premium Payments on His Insurance Policy