Question

With _______ insurance, the insured agrees to pay a specific premium each year until death.

Answer 1

The answer is A. life insurance that pays a benefit on the death of the insured and also accumulates a cash value.

Answer 2

The correct answer is:

A) whole life insurance

Explanation:

Whole life insurance provides a lifetime of coverage at a set premium. The policy develops a cash value that is an asset of the insurance company. This is how the company avoids increasing your premiums as you age. You can also borrow against this cash value.