Which statement about an Ordinary (Straight) Life policy is NOT true?

Which statement about an Ordinary (Straight) Life policy is NOT true?

• A. It has a guaranteed death benefit
• B. It provides lifelong coverage
• C. Premiums are level throughout the policy
• D. It is a type of whole life insurance

Answer: (D)

An Ordinary (Straight) Life policy is, indeed, a type of whole life insurance. This classification is important as it describes a policy that provides permanent life insurance coverage with the benefit of a guaranteed death benefit and level premiums for the insured's entire lifetime. The other statements accurately describe the characteristics of an Ordinary Life policy: - It does have a guaranteed death benefit, meaning the insurer promises to pay a predetermined amount to beneficiaries upon the death of the insured, as long as premiums have been paid. - The policy provides lifelong coverage as long as the premiums are maintained, protecting the policyholder for their entire life. - The premiums remain level throughout the life of the policy, providing financial predictability and stability for the policyholder. Identifying the correct statement involves recognizing the true nature of an Ordinary Life policy within the scope of life insurance products.

An Ordinary (Straight) Life policy is, indeed, a type of whole life insurance. This classification is important as it describes a policy that provides permanent life insurance coverage with the benefit of a guaranteed death benefit and level premiums for the insured's entire lifetime. The other statements accurately describe the characteristics of an Ordinary Life policy:

• It does have a guaranteed death benefit, meaning the insurer promises to pay a predetermined amount to beneficiaries upon the death of the insured, as long as premiums have been paid.

• The policy provides lifelong coverage as long as the premiums are maintained, protecting the policyholder for their entire life.

• The premiums remain level throughout the life of the policy, providing financial predictability and stability for the policyholder.

Identifying the correct statement involves recognizing the true nature of an Ordinary Life policy within the scope of life insurance products.