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What kind of premium does a whole life policy have?

a. Decreasing
b. Adjustable
c. Level
d. Deferred

User Pablorc
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1 Answer

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Final answer:

A whole life policy has a level premium and a cash value component. It also provides a death benefit.

Step-by-step explanation:

A whole life policy has a level premium. This means that the premium remains the same throughout the life of the policy. It does not decrease or increase over time.

Furthermore, a whole life policy also has a cash value component. This means that a portion of the premium paid goes towards accumulating cash value which can be used by the policyholder. This can be seen as a savings component of the policy.

It's important to note that a whole life policy has a death benefit as well, which is the amount paid out to the beneficiary in case of the policyholder's death.

User Stickers
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