Question

Which of the following are true of ordinary whole-life insurance policies?

1. The insured pays premiums on this type of insurance until his death.
2. Ordinary whole life insurance covers the insured for the states term of the policy.
3. The insured only has to pay on this type of policy for a certain number of years.
4. Ordinary whole life insurance has some value as an investment.

Thank you for the help in advance. this is the only problem that i just cannot figure out.

Answer 1

1. is the correct answer. Although whole life policies have cash value, it is less than the money put in, and should not be considered an investment. So I would not pick 4.

2. and 3. are just plain wrong.

Answer 2

Thank You SO Much! :)