New Jersey Life Insurance Exam Practice Question
Which of the following policies offers flexible premiums?
Correct Answer: B
Rationale: Universal life insurance is designed with flexible premiums, allowing policyholders to adjust their payments based on their financial situation. This adaptability makes it distinct from other options.
Modified whole life offers lower premiums initially but eventually increases to fixed amounts, lacking true flexibility. Variable whole life allows for premiums to vary, but it is more focused on investment components rather than flexibility in payments. Term life, on the other hand, has fixed premiums for a set period, providing no flexibility in payment amounts. Thus, universal life stands out for its premium flexibility.
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