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 client is a 33-yearold man who does not have children and would like to provide a death benefit for his wife. He currently has considerable cash resources, so he is primarily interested in using the policy as a tax-sheitered investment vehicle. Based on this information alone, you recommend that he purchase a whole llfe policy. Your client takes your advice but wants to understand more about the different features of his policy: specifically the relationshlp between the premlums 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: Cash Value and Pure Death Protection in a Whole Life Policy Cash Value and Pure Death Protection in a Whole Life Pollicy 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 cancel or borrow against the policy, he would be able to withdraw up to because of the whole life insurance. True or False: The actual cash value of the plan is subject to change based on the policyholder's future medical conditions, True Faise broker with a client who is interested in buying a whole life insurance policy. You explain to ous premium, also known as limited payment, and single premium Aren and would like to provide tor his wife. He currently has considerable cas policy as a tax-sheltered inves you recommend that he purct whole life policy. ut wants to understand more about the different features of his policy: specifically the relation alue of his plan, and the death benefits his beneficiaries would receive in the event of his passi of whole life insurance: continuous premium, also known as old man who does not have children and would like to provide a death benefit for his wife. He currently has considera primarily interested in using the policy as a tax-sheltered investment vehicle. 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 th s policy: specifically the premiums he pays, the cash value of his plan, and the death benefits receive in the event of hi. show him the following graph: The graph projects the cash value and death protection for a $200,000 whole life policy. If the True or False: Ti $200,000 True False $160,000 and death protection for a $200,000 whole life policy. If the client were to die at age 90 n death protection the cash value. If instead, at , he would be abl because of the value of the plan is surject to crrmye vased on the policyholder's future medical conditions. otection for a $200,000 whole life policy. If the client were to die at age 90 , his benefic tion the cash value. If instead, at age 70 , th he able to withdraw up to se of the Cash value otection for a $200,000 $120,000 icy. If the client were to die at age 90 , his be cash value. If instead, at age 7 because of the In is subject to change based on the policyholder's future medical conditions. y. If the client were to die at age 90 , his beneficiaries would cash value. If instead, at age 70 , the client were to because of the associated with cyholder's future
