Question

What option is typically available to policyholders in whole life insurance contracts?

a.

Surrender the policy for a cash value

b.

Obtain a loan against the policy

c.

Convert the policy into an annuity

d.

Pay premiums only for a limited period

Posted under IC 92 Actuarial Aspects of Product Development

Answer: (d).Pay premiums only for a limited period Explanation:Policyholders in whole life insurance contracts often have the option to pay premiums only for a limited period and then continue the cover till death without paying any premium.

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Q. What option is typically available to policyholders in whole life insurance contracts?
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