Question

A person who saves money for the future by buying a whole life policy A. pays the same premium for the same amount of term coverage. B. is able to accumulate tax-free interest earnings on cash values. C. buys more insurance for a given premium compared to term. D. probably earns a rate of return on cash values greater than in an equivalent universal life policy.

Answer 1

B. is able to accumulate tax-free interest earnings on cash values.

Explanation: whole life insurance policy also known as permanent life insurance,is an insurance policy where people who buy the policy are deferred from paying tax,this policy ensure that you pay the same amount of premium throughout the policy,it is a policy that is not termed and it doesn't expire it can last up to 120years.