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Insurance Assignment | Professional Writing

Author:
May 25th, 2020

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

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There are two types of whole life insurance: ordinary life insurance and limited-payment life insurance.
If the whole life insurance premiums are to be paid throughout the insured’s lifetime, the insurance is known as ordinary life.

Homework For You
Ordinary life insurance is a type of whole life insurance for which premiums are based on the assumption that they will be paid until the insured’s death.
Because the premium rate for an ordinary life contract is calculated on the assumption that premiums will be payable throughout the whole of life, the highest premium rate for any type of whole life policy is produced.

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