Final answer:
For Jeff, 42, seeking a whole life policy focused on cash flow, a Life paid-up at age 65 policy is most beneficial as it offers balanced premiums and lifetime coverage without affecting cash flow significantly.
Step-by-step explanation:
Jeff, who is 42 years of age and looking at options for whole life policies with cash flow as his primary consideration, would most likely benefit from a Life paid-up at age 65 policy. This policy allows Jeff to pay premiums until he is 65, at which point the policy is considered fully paid, and no additional premiums are necessary.
Such a plan would likely offer a balance between premium costs and coverage duration, maximizing cash flow during his working years while still providing lifetime coverage.
Other policies like Single premium whole life require a large one-time payment, which can be disadvantageous for cash flow. A Twenty-pay whole life policy would also be fully paid after 20 years, but the premiums would be higher than a life paid-up at 65 policy, as the payment period is shorter.
A Ten-year endowment would provide coverage for only 10 years and includes an investment component, which isn't necessarily focused on lifetime coverage or cash flow.