Which of the following is not a strength associated with a whole life policy?
A)The premiums remain level over time and thus aren't unaffordable in later years
B)Higher payments than needed to cover mortality risk are an effective "forced savings" component for those who need it
C)The policy is designed to commonly pay a cash benefit to the beneficiary in contrast to term's less frequent payout as temporary insurance
D)All of the above are strengths associated with a whole life policy
E)None of the above is a strength associated with a whole life policy

Question

Quizplus · Accepted Answer

Each of the options listed (A, B, C) describes a recognized strength of whole life insurance policies: level premiums, a savings component, and a guaranteed death benefit, respectively.

Which of the Following Is Not a Strength Associated with a Whole