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Which policy/product below, sold to a 65-year-old man, will mature or endow the soonest?

A. 10 Pay life
B. 20 Pay life
C. Ordinary Whole life
D. 20-year Endowment

1 Answer

5 votes

Final answer:

The 20-year Endowment policy will mature the soonest for a 65-year-old man, maturing when he reaches 85 years of age, as it is the only one with a set term.

Step-by-step explanation:

Regarding a policy or product that would mature or endow the soonest for a 65-year-old man, we can evaluate the options provided: A. 10 Pay life, B. 20 Pay life, C. Ordinary Whole life, D. 20-year Endowment. The 'Pay life' policies are types of whole life insurance where premiums are paid for a specified number of years, after which no additional premiums are due, but the policy remains in effect until the insured's death or policy maturation. The 20-year Endowment policy is designed to pay out the face value of the policy either at the end of the 20-year term or upon the insured's death within the term.

In this case, option D, the 20-year Endowment policy, would mature the soonest, as it is the only policy explicitly tied to a term of years rather than the life of the insured. Therefore, if a 65-year-old man were to purchase this policy, it would mature or endow at age 85, sooner than the other policies which last until the insured's death or when the maturity date is not specified as with the Ordinary Whole life insurance.

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