New York Insurance Exam Practice Question
What is the primary advantage of whole life insurance?
Correct Answer: C
Rationale: Whole life insurance offers a guaranteed death benefit and cash value growth, making it a long-term financial asset. This dual feature provides security for beneficiaries and a savings component that accumulates over time.
Option A, low cost, is misleading; whole life policies generally have higher premiums compared to term insurance. Option B, flexible premiums, applies more to universal life insurance, which allows for adjustments in payments. Option D, short-term coverage, does not pertain to whole life insurance, as it is designed for lifelong protection, not temporary solutions.
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