Which term describes life insurance that is kept in force for a person's entire life and pays a benefit upon the person's death?

• A. Term life insurance
• B. Insurance policy
• C. Whole life insurance
• D. Real estate

Answer: (C)

Lifelong protection with a built-in cash value is the hallmark of permanent life insurance. Whole life insurance is designed to stay in force for the insured’s entire life, guaranteeing a death benefit whenever they pass away. It typically features level premiums that don’t rise over time and often accumulates cash value that the policyholder can borrow against or withdraw under certain conditions. This combination—lasting coverage for life plus potential cash value—fits the description of an insurance that remains in force for life and pays a benefit at death.

Term life insurance, by contrast, covers a set period and ends after that term, without guaranteed lifelong protection or cash value. The term “insurance policy” is too broad, and real estate isn’t insurance at all.