Which category best describes life insurance that remains in force for the insured's life or until age 100 and may include a cash value?

Which category best describes life insurance that remains in force for the insured's life or until age 100 and may include a cash value?

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

Answer: (A)

Permanent life insurance lasts for the insured’s entire life (or until a stated age like 100) and often builds cash value. Because the coverage isn’t tied to a specific term, it provides a guaranteed death benefit as long as premiums are paid. The cash value grows over time and can be accessed through loans or withdrawals, though doing so can reduce the death benefit and may have tax implications. This category includes whole life, universal life, and variable life, which differ mainly in how premiums are paid and how the cash value is credited. This distinguishes it from term life, which covers a set period and typically has no cash value, and from decreasing term, which lowers the death benefit over time.

Permanent life insurance lasts for the insured’s entire life (or until a stated age like 100) and often builds cash value. Because the coverage isn’t tied to a specific term, it provides a guaranteed death benefit as long as premiums are paid. The cash value grows over time and can be accessed through loans or withdrawals, though doing so can reduce the death benefit and may have tax implications. This category includes whole life, universal life, and variable life, which differ mainly in how premiums are paid and how the cash value is credited. This distinguishes it from term life, which covers a set period and typically has no cash value, and from decreasing term, which lowers the death benefit over time.