AD Banker Comprehensive Practice Exam

Disable ads (and more) with a membership for a one time $2.99 payment

Enhance your exam readiness with the AD Banker Comprehensive Exam guide. Includes flashcards and multiple-choice questions with explanations.

Each practice test/flash card set has 50 randomly selected questions from a bank of over 500. You'll get a new set of questions each time!

Practice this question and more.

A policy that endows at a specific age is known as what type of life insurance?

Whole life insurance
Term life insurance
Universal life insurance
Variable life insurance

The correct answer is: Whole life insurance

A policy that endows at a specific age is referred to as whole life insurance. This type of life insurance is designed to provide coverage for the insured’s entire life as long as premiums are paid, and it typically accumulates cash value over time. The endowment feature means that the policy will pay out its face value either upon the death of the insured or at a predetermined age, usually 100 or 121 years, whichever comes first. Whole life policies are structured in a way that they provide both a death benefit and a savings component, leading to a buildup of cash that can be utilized by the policyholder. This distinguishes them from other types of policies like term and universal life insurance, which do not offer this guaranteed payout at a certain age or accumulate guaranteed cash value in the same way.