Final answer:
All permanent life insurance policies offer level premiums, cash values, and permanent death protection, which are not features of term life policies. The correct answer is E. I, II, and IV only. Both term and permanent life insurances provide tax-free death benefits, and not all permanent policies include tax-sheltered investment vehicles.
Step-by-step explanation:
Which of the following do ALL permanent life insurance policies offer that term life insurance policies do not? The characteristics unique to permanent life insurance policies, as opposed to term life insurance policies, include level premiums (cash values and permanent death protection. Therefore, of the options provided, the correct answer is E. I, II, and IV only, which refers to level premiums, cash values, and permanent death protection.
The key distinction to note is that permanent life insurance guarantees level premiums throughout the life of the policy, accumulates a cash value which can be borrowed against or withdrawn (subject to the policy's terms), and offers permanent death protection, meaning it pays a death benefit as long as premiums are paid and the policy is in force.
While tax-free death benefits to beneficiaries are a feature shared by both term and permanent life insurance, tax-sheltered investment vehicles are not a universal feature of all permanent life policies, as some may not provide investment opportunities within the policy structure.