Three major types of whole life policies are available. Which of the following is/are Not out of those?
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A. B. C. D.D
Whole life insurance policies provide coverage for the entire life of the insured and offer both death benefits and a savings component known as cash value. There are three major types of whole life policies: continuous premium, limited premium, and single premium.
Continuous premium policies require the policyholder to pay premiums throughout the entire life of the policy. The premiums are typically level, meaning they remain the same throughout the policy's lifetime. These policies offer a death benefit and a cash value component that accumulates over time.
Limited premium policies require the policyholder to pay premiums for a specific period, such as 10, 15, or 20 years. After the premium payment period ends, the policy remains in force, and the policyholder no longer needs to pay premiums. These policies also offer a death benefit and a cash value component.
Single premium policies require the policyholder to make a one-time payment at the beginning of the policy's term. These policies typically offer a larger death benefit and cash value component than continuous premium or limited premium policies.
Therefore, the correct answer to this question is (D) None of these, as all three types of policies - continuous premium, limited premium, and single premium - are major types of whole life policies.