Which statement about permanent life insurance is true?

Which statement about permanent life insurance is true?

• A. It includes a savings element and remains in force to age 100
• B. It is always term coverage
• C. It does not accumulate cash value
• D. It expires at a predetermined term

Answer: (A)

Permanent life insurance combines lifelong protection with a cash value that grows over time. Because of this savings element, the policy stays in force for the insured’s lifetime (often to age 100 or until death) as long as premiums are paid. That makes the statement true. In contrast, term coverage is designed for a fixed period and does not accumulate cash value, and it can expire at the end of the term.

Permanent life insurance combines lifelong protection with a cash value that grows over time. Because of this savings element, the policy stays in force for the insured’s lifetime (often to age 100 or until death) as long as premiums are paid. That makes the statement true. In contrast, term coverage is designed for a fixed period and does not accumulate cash value, and it can expire at the end of the term.