New York State Life Insurance Exam Questions Practice Question
What does a limited payment whole life policy provide?
Correct Answer: B
Rationale: A limited payment whole life policy offers lifetime protection, ensuring that the insured is covered for their entire life once the policy is fully paid.
Option A is incorrect as it only provides protection until age 65, which is not characteristic of whole life policies. Option C suggests a lower premium, but limited payment policies typically have higher premiums due to the shorter payment period. Option D refers to pure protection, which applies to term life insurance rather than whole life, as whole life policies also accumulate cash value. Thus, lifetime protection is the key benefit of a limited payment whole life policy.
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