Pennsylvania Life and Health Insurance Exam Practice Question
A life insurance policy that provides a policyowner with cash value along with protection is called:
Correct Answer: B
Rationale: Whole life insurance combines both a death benefit and a cash value component, allowing policyowners to accumulate savings over time. This cash value can be borrowed against or withdrawn, providing financial flexibility.
Term life insurance (A) offers only a death benefit for a specified period without any cash value. Credit life insurance (C) is designed to pay off a borrower's debt upon their death, lacking both cash value and long-term protection. Group life insurance (D) typically covers a group of individuals, like employees, and usually does not build cash value, focusing instead on providing basic life coverage.
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