Question

The two basic types of life insurance policies are: a. Universal and Endowment b. Term and Permanent Whole Life c. General and Select d. Long Term and Short Term

Answer 1

The two basic types of life insurance policies are B. Term and Permanent Whole Life.

A life insurance policy is a contract that someone gets with an insurance company. The purchaser makes payment to the company and if the person passes away, the insurance company will pay a large lump-sum payment known as a death benefit. Life insurance policies vary based on the purchaser. Whole and Term are two different types of life insurance policies. Whole life insurance coverage covers you your entire life whereas term life insurance only pays if needed during a certain term in life.