Texas Life Agent Practice Exam 2026 – Comprehensive All-in-One Guide to Master Your Certification!

Question: 1 / 400

Which of the following statements is true regarding Whole Life insurance?

It provides coverage for a specified term only

It accumulates cash value over time

Whole Life insurance is designed to provide lifelong coverage, meaning it does not expire after a specified term as term life insurance does. One of the key features of Whole Life insurance is that it accumulates cash value over time. This cash value grows at a guaranteed rate and is an integral part of Whole Life policies. Policyholders can borrow against this cash value or even withdraw funds, providing financial flexibility and benefits that can be utilized during the policyholder’s lifetime.

The other statements reflect misunderstandings of Whole Life insurance. For example, while it provides a death benefit, it is not limited to coverage for a specified term, nor is it available only in fixed amounts as it can vary based on the policyholder’s needs and choices.

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It does not offer a death benefit

It is only available in fixed amounts

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