Which term refers to a life insurance policy that is often associated with guaranteeing minimum benefits stated in the contract?

Which term refers to a life insurance policy that is often associated with guaranteeing minimum benefits stated in the contract?

• A. Fixed life insurance
• B. Replacement
• C. Illustration
• D. Group life insurance

Answer: (A)

In life insurance, the term that denotes a policy designed to provide guaranteed, steady benefits is fixed life insurance. This type is built to guarantee the minimum benefits stated in the contract, with premiums often level and the promised death benefit protected from market fluctuations. The other options describe things that don’t represent a policy type with guaranteed minimum benefits: replacement is about swapping policies, an illustration is just a projection of potential values, and group life insurance is employer-provided coverage with its own terms.

In life insurance, the term that denotes a policy designed to provide guaranteed, steady benefits is fixed life insurance. This type is built to guarantee the minimum benefits stated in the contract, with premiums often level and the promised death benefit protected from market fluctuations. The other options describe things that don’t represent a policy type with guaranteed minimum benefits: replacement is about swapping policies, an illustration is just a projection of potential values, and group life insurance is employer-provided coverage with its own terms.