Oklahoma Life Producer Practice Exam

What is one alternative term for a traditional whole life insurance policy?

1. Simplified issue

2. Universal life

3. Permanent life

4. Term policy

The correct answer is: Permanent life

A traditional whole life insurance policy is often referred to as a permanent life insurance policy. This term highlights the key characteristic of whole life insurance: it provides coverage for the entire lifetime of the insured, as long as the premium payments are made. Unlike term insurance, which only covers the insured for a specific period, permanent life insurance, including whole life, is designed to remain in force throughout a person’s life, offering both a death benefit and a cash value component that grows over time. The term "permanent life" succinctly captures the enduring nature of whole life insurance, making it an appropriate alternative name. It emphasizes the policy's longevity and the financial security it offers to beneficiaries, which is a significant aspect compared to insurance types that are time-bound, such as term policies.