Question

All of the following statements concerning whole life insurance are correct EXCEPT

If the whole life insurance premiums are to be paid throughout the insured’s lifetime, the insurance is known as limited-payment; if the whole life insurance premiums are to be paid only during a specified period, the insurance is designed as ordinary life

Whole life insurance offers permanent protection with cash values, and it can be either
participating or nonparticipating

The protection afforded by the whole life insurance contract is permanent-the term never
expires, and the policy never has to be renewed or converted

Whole life insurance provides for the payment of the policy’s face amount upon the death of the insured, regardless of when death occurs.

Answer 1

The correct answer will be "The protection afforded by the whole life insurance contract is permanent-the term never
expires, and the policy never has to be renewed or converted".It is because whole life insurance is an agreement between the insured and insurer of the life insurance policy in which the insurer will pay the death benefit of the policy to the policy's beneficiaries when the insured dies. It is ensured to stay in power for the protected's whole lifetime, given required premiums are paid, or to the maturity date. A whole life insurance policy is said to "mature" at death or the maturity age of 100, whichever comes first. The maturity date will be the "policy anniversary closest age 100". The arrangement turns into a "matured endowment" when the safeguarded individual carries on with past the expressed maturity age.

The other options are not correct because of the above reason.