Oklahoma Life Producer Practice Exam

What are the five kinds of whole life insurance?

1. Limited benefits

2. Endowment policy

3. Term insurance

4. Universal life

The correct answer is: Endowment policy

Whole life insurance is characterized by providing coverage for the insured's entire lifetime, as long as premiums are paid, and it typically includes a cash value component that grows over time. Among the choices, the endowment policy is indeed a kind of whole life insurance. An endowment policy combines life insurance and savings, where the insurer pays a lump sum either upon the death of the insured or at the end of a specified term if the insured survives to that date. This aligns with the concept of whole life insurance in that it guarantees a benefit at a certain time, while also providing lifelong coverage. In contrast, limited benefits refers to policies that may cap the amount of coverage, which is not a specific category of whole life insurance. Term insurance is a separate product altogether, providing coverage for a specified period without accumulating cash value, and universal life represents a flexible premium adjustable benefit policy that is distinct from traditional whole life.