The basic whole life policy, also referred to as ordinary life or continuous premium, requires the premium to be paid from issue until death or age 100. Which term describes this?

The basic whole life policy, also referred to as ordinary life or continuous premium, requires the premium to be paid from issue until death or age 100. Which term describes this?

• A. Death benefit
• B. Cash account
• C. Living benefit
• D. Universal life

Answer: (C)

In whole life policies, the portion you pay into and accumulate over time creates a cash value that you can access during your lifetime. The term that best fits benefits available to you while you’re alive—such as borrowing against the policy’s cash value or receiving accelerated benefits—is living benefits. So, among the options, living benefits describe the ability to use value from the policy while you’re living, rather than only receiving a payout at death. The other terms refer to different aspects: the death benefit is the payout at death, the cash account is the savings buildup inside the policy, and universal life is a separate, more flexible policy type.

In whole life policies, the portion you pay into and accumulate over time creates a cash value that you can access during your lifetime. The term that best fits benefits available to you while you’re alive—such as borrowing against the policy’s cash value or receiving accelerated benefits—is living benefits. So, among the options, living benefits describe the ability to use value from the policy while you’re living, rather than only receiving a payout at death. The other terms refer to different aspects: the death benefit is the payout at death, the cash account is the savings buildup inside the policy, and universal life is a separate, more flexible policy type.