Which of the following accurately describes the premiums of whole life insurance?

Which of the following accurately describes the premiums of whole life insurance?

• A. They are lower than term life premiums
• B. They remain level throughout the policyholder's life
• C. They can fluctuate based on market conditions
• D. They expire after a certain period

Answer: (B)

Whole life insurance premiums are indeed characterized by remaining level throughout the policyholder's life. This means that the premium amount is fixed and does not change as the insured ages, providing stability in payment over time. This feature is one of the hallmarks of whole life insurance, making it a predictable and reliable option for policyholders. The premiums are typically higher than those of term life insurance due to the lifelong coverage and the savings component that whole life policies include. The other options do not accurately represent the nature of whole life insurance premiums. While term life insurance may have lower premiums, this does not apply to whole life policies. Whole life premiums are also not subject to fluctuations based on market conditions, unlike some other types of life policies. Furthermore, whole life insurance does not expire; it remains in force for the entire lifetime of the insured as long as premiums are paid.

Whole life insurance premiums are indeed characterized by remaining level throughout the policyholder's life. This means that the premium amount is fixed and does not change as the insured ages, providing stability in payment over time. This feature is one of the hallmarks of whole life insurance, making it a predictable and reliable option for policyholders. The premiums are typically higher than those of term life insurance due to the lifelong coverage and the savings component that whole life policies include.

The other options do not accurately represent the nature of whole life insurance premiums. While term life insurance may have lower premiums, this does not apply to whole life policies. Whole life premiums are also not subject to fluctuations based on market conditions, unlike some other types of life policies. Furthermore, whole life insurance does not expire; it remains in force for the entire lifetime of the insured as long as premiums are paid.