Which refers to various forms of life insurance policies that build cash value and remain in effect for the entire life of the insured (or until age 100)?

Which refers to various forms of life insurance policies that build cash value and remain in effect for the entire life of the insured (or until age 100)?

• A. Permanent life insurance
• B. Term life insurance
• C. Variable life insurance products
• D. Renewable term

Answer: (A)

Permanent life insurance provides lifetime protection and builds cash value. These policies stay in force for the insured’s whole life (or until age 100) as long as premiums are paid, and they accumulate cash value over time. This distinguishes them from term life, which covers a set period and typically has no cash value. Within permanent life, there are forms like whole life, universal life, and variable life, all of which build cash value, though they differ in how premiums, guarantees, and investment components work. The cash value can be borrowed against or withdrawn, and the death benefit remains in place for life. Renewable term, while it can be extended, remains term coverage and generally does not create lasting cash value, so it doesn’t fit the description.

Permanent life insurance provides lifetime protection and builds cash value. These policies stay in force for the insured’s whole life (or until age 100) as long as premiums are paid, and they accumulate cash value over time. This distinguishes them from term life, which covers a set period and typically has no cash value. Within permanent life, there are forms like whole life, universal life, and variable life, all of which build cash value, though they differ in how premiums, guarantees, and investment components work. The cash value can be borrowed against or withdrawn, and the death benefit remains in place for life. Renewable term, while it can be extended, remains term coverage and generally does not create lasting cash value, so it doesn’t fit the description.