Ace the PSI Ohio Insurance Test 2026 – Unlock Your Insurance Genius!

Question: 1 / 400

Which of the following is NOT a characteristic of a Whole Life Policy?

Fixed premiums

Cash value accumulation

Guaranteed dividends

A Whole Life Policy is designed to provide lifelong coverage, typically with fixed premiums and cash value accumulation. The fixed premiums mean that the policyholder pays the same amount throughout the life of the policy, which makes budgeting easier. The cash value component grows over time, allowing policyholders to borrow against it or access it if they choose to surrender the policy.

Lifetime coverage is another defining feature of a Whole Life Policy, ensuring that the insured is covered as long as premiums are paid, regardless of age or health changes.

Guaranteed dividends, however, are not a universal characteristic of all Whole Life Policies. While some policies may offer dividends, these are contingent on the insurer's performance and are not guaranteed. Thus, selecting a Whole Life Policy does not ensure that the insured will receive dividends, making this the correct response to the question.

Get further explanation with Examzify DeepDiveBeta

Lifetime coverage

Next Question

Report this question

Subscribe

Get the latest from Examzify

You can unsubscribe at any time. Read our privacy policy