Drop down options:

1. direct, unlimited, straight life

2. continuous premium, limited payment, single premium

3. 40k, 120k, 200k, 20k, 160k

4. in addition to, but would forfeit

5. 20k, 160k, 120k, 200k, 40k

6. 200k, 160k, 120k, 85k, 20k

7. renewability provision, convertibility provision, nonforfeiture right

Ch 08: Assignment -Insuring Your Life 6. Understanding whole life insurance Suppose you are a life insurance broker with a client who is interested in buying a whole life insurance policy. You explain to him the three major types of whole life insurance continuous premium, also known as limited payment, and single premium. Your dient is a 33-year old man and a father of four who is looking for the policy that provides the most permanent death protection for a given number of premium dollars. Based on this information alone, you recommend that he purchase a whole life policy. Your client takes your advice but wants to understand more about the different features of his policy: specifically the relationship between the premiums he pays, the cash value of his plan, and the death benefits his beneficiaries would receive in the event of his passing. To help illustrate, you show him the following graph: THOUSANDS OF DOLLARS Death Protection 7000100 AGE OF INSURED THOUSANDS OF DOLLARS Death Protection 40 50 60 70 80 90 100 AGE OF INSURED the The graph projects the cash value and death protection for a $200,000 whole life policy. If the client were to die at age 90, his beneficiaries would receive roughly in death protection cash value. If instead, at age 70, the client were to cancel or borrow against the policy, he would be able to withdraw up to because of the associated with whole life insurance. True or False: The actual cash value of the plan is subject to change based on annual market rates of return. True False