Oklahoma Life Producer Practice Exam

When does a Whole Life policy mature?

1. Upon the insured’s death

2. At age 100

3. When cash value equals the face amount

4. All of the above

The correct answer is: All of the above

A Whole Life policy matures primarily at age 100. This is a significant feature of Whole Life insurance, as it is designed to provide coverage for the entire lifetime of the insured. If the insured reaches the age of 100, the policy matures, and the insurer pays out the face amount of the policy to the policyholder, or the beneficiaries if the policyholder has passed away. While it's true that the policy can pay out upon the insured's death — which is a fundamental purpose of life insurance — the maturity event is specifically tied to reaching age 100. Additionally, the policy's cash value accumulation can also equal the face amount over time, but that is not the primary mechanism for maturity. The concept of maturity can indeed manifest in different scenarios (death of the insured, reaching the age of 100, or equal cash value to the face amount), which is why this aspect of Whole Life insurance can be seen as comprehensive. Each option provides a scenario in which a payout occurs, aligning with the insurance's purpose to either provide financial support during the insured’s lifetime or after their passing. However, the definitive maturity event for a standard Whole Life policy is distinctly recognized as reaching age 100.