Health and Life Insurance

Answer: C - A retirement income policy accumulates money for retirement with a death policy. When the insured reaches retirement, the policy pays so much per $1,000 of life insurance for the life of the insured or for a specified time. Retirement income policies tend to be expensive and the cash value accumulation is high in order to meet the expense of the monthly income. To maintain this type of policy as a life insurance policy, when the cash value approaches the face amount the, face amount must be increased.