A whole life policy differs from a term policy in that:

Question

Quizplus · Accepted Answer

A whole life policy accumulates cash value over time, whereas a term policy does not. The premiums paid for a whole life policy also remain level throughout the policy, unlike term policies which can increase after the initial term expires. Option A is incorrect because while the premiums for a whole life policy remain level, they are typically higher than term policies. Option B is incorrect because premiums may still be required after age 65 depending on the specifics of the policy. Option C is incorrect because the rate for a whole life policy is typically higher than that of a term policy.

A Whole Life Policy Differs from a Term Policy in That