PSI Ohio Insurance Practice Exam

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Study for the Ohio Insurance Test. Prepare with flashcards and multiple choice questions, each question accompanied by hints and explanations. Excel in your exam!

Each practice test/flash card set has 50 randomly selected questions from a bank of over 500. You'll get a new set of questions each time!

Practice this question and more.

Which whole life policy premium type is the most common?

Single premium.
Continuous premium.
Limited payment premium.
Flexible premium.

The correct answer is: Continuous premium.

The continuous premium whole life policy is the most common type of premium structure. This type of policy requires the policyholder to pay premiums regularly throughout the lifetime of the insured, which provides lifelong coverage as long as the premiums are paid. This type of premium allows for stable and predictable costs over time, making it easier for individuals to budget and maintain their insurance coverage. Continuous premium policies are designed to accumulate cash value and provide a death benefit, and since they cover the entire life of the insured, they are appealing for long-term financial planning. Other premium types, like single premium, limited payment, and flexible premium policies, have their specific uses but are less prevalent compared to the continuous premium structure. Single premium requires a one-time payment for whole life insurance, while limited payment policies allow premiums to be paid for a specified number of years, after which the policy remains in force without further payment. Flexible premium policies, often seen in universal life insurance, allow policyholders to adjust their premium payments and death benefits, providing more adaptability but are less common in traditional whole life insurance policies.