Kansas Life & Health Insurance Practice Exam 2025 – All-in-One Guide for Exam Success!

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What is usually true about whole life insurance policies compared to term life?

Whole life insurance does not require a health questionnaire

Whole life insurance typically costs more than term life insurance

Whole life insurance is designed to provide lifelong coverage, which contributes to its higher cost compared to term life insurance. One of the key features of whole life insurance is that it includes an investment component, allowing the policy to accumulate cash value over time. This cash value grows at a guaranteed rate and can be borrowed against or withdrawn, which adds to the overall expense of the policy.

In contrast, term life insurance provides coverage for a specified period (such as 10, 20, or 30 years) and does not accumulate cash value, making it generally more affordable. Because term insurance is designed to be a pure death benefit without the additional cash value features, it is less expensive compared to whole life insurance.

Understanding the fundamental differences in cost structure between whole life and term life is crucial for consumers when making decisions based on their insurance needs and financial goals.

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Whole life insurance coverage is limited to twelve months

Whole life insurance has no cash value

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