Nevada C-10 Landscape Exam Practice

What is a key characteristic that distinguishes 'Whole Life' insurance from 'Term Life' insurance?

Whole life policies offer higher death benefits for the same premium. Whole life policies build cash value and provide coverage for the insured's entire life. Term life policies offer the option to borrow against the policy's value. Term life policies always have level premiums for the life of the policy.

Correct Answer:

Whole life policies build cash value and provide coverage for the insured's entire life.

Explanation:

The fundamental difference between whole life and term life insurance lies in their duration and cash value accumulation. Whole life insurance provides lifelong coverage and builds cash value.

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