Health and Life Insurance

Category - Annuities & Policies

A life insurance policy that would pay $500,000 if the individual dies before 65 or $250,000 if the individual dies after age 65 is most likely what type of policy?
  1. Multiple protection policy
  2. Minimum deposit policy
  3. Juvenile policy
  4. Joint life or survivor policy
Explanation
Answer: A - The multiple protection policy would pay $500,000 if the individual dies before 65 or $250,000 if the individual dies after age 65. A multiple protection policy is a combination of whole life and term life. Protection in the multiple protection policy is higher during the early years of the policy, and then less in the later years of the policy.
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