Question

All the following statements concerning ordinary life insurance are correct EXCEPT: Group of answer choices The face amount of the policy is paid if the insured lives to age 75. Premiums are level throughout the life of the policy. There is a build-up of cash value the policyholder can borrow. Ordinary life offers the policyholder the flexibility to meet a wide range of financial objectives.

Answer 1

Answer:

Correct Answer:

4. Ordinary life offers the policyholder the flexibility to meet a wide range of financial objectives.

Explanation:

Ordinary life insurance is a type of life insurance in which policyholders pay premiums for their whole lives at a set price and interval. Despite offering protection in an event of unfortunate event for the policyholders, it does not offer the flexibility to meet wide range of financial objectives.

Ordinary life insurance policies are often considered paid up if the policyholder reaches 100 years of age.