Final answer:
Theresa's twenty-pay whole life insurance policy will mature at age 58, as she will have completed the premium payments by that age. The options provided do not accurately reflect the correct answer, which should be 'None of the above.'
Step-by-step explanation:
The student has inquired, 'When will Theresa's policy mature if she is age 38 and purchases a twenty-pay whole life insurance policy with a death benefit of $50,000?' Theresa's policy will mature when she turns age 58. This is because she will have finished making premium payments after 20 years, finishing at age 38 plus 20 years equals 58.
The answer is not listed in the options provided, so it would be 'None of the above.' Whole life insurance typically matures at age 100, meaning that's when the face value of the policy is paid out if the insured is still living. However, the maturity date refers to when the policy ends and the death benefit is paid out, not when premium payments stop.
The policy Theresa has is a twenty-pay whole life insurance policy, which means she needs to make premium payments for 20 years. After the 20-year period, she will no longer be required to make payments but her policy will continue until it matures.
The maturity of a whole life insurance policy is typically when the insured person reaches a certain age, usually 100. This means that Theresa's policy will mature when she turns 100 years old, option A.