Describe whole life insurance. (1 point)
- It is a type of permanent life insurance that offers flexibility on how to invest the cash value of the policy.
- It covers the employee's income and medical costs when they are hurt on the job and therefore are unable to work for a long time.
- It is a common permanent life insurance policy, which lasts as long as the premiums continue to be paid, and the death benefit remains constant for the length of the policy.
- It is sponsored by the employer as part of benefits and provides protection to an employee while they cannot work and therefore cannot earn an income.
The correct answer is:
- It is a common permanent life insurance policy, which lasts as long as the premiums continue to be paid, and the death benefit remains constant for the length of the policy.