Tennessee Life Producer Practice Exam

Straight Whole Life insurance provides what type of protection?

1. Temporary protection with increasing premiums

2. Permanent level protection with level premiums

3. Variable benefits linked to market performance

4. Protection only until retirement age

The correct answer is: Permanent level protection with level premiums

Straight Whole Life insurance is designed to offer permanent life insurance coverage, ensuring that the policy stays in force for the insured's entire lifetime, as long as the premiums are paid. This type of policy features level premiums, which means that the amount paid by the policyholder remains consistent throughout the life of the policy. Additionally, the benefits provided under Straight Whole Life insurance are also permanent in nature. Upon the insured's death, the death benefit is guaranteed to be paid to the beneficiaries, providing financial security that is not subject to expiration or renewal like temporary coverage options. With this structure, policyholders can anticipate stable costs without the threat of rising premiums that often accompany temporary protection policies. This permanence and predictability in both premiums and benefits is a key advantage of Straight Whole Life insurance.