Which policy is designed to provide coverage for a specified period and may end at age 100?

Which policy is designed to provide coverage for a specified period and may end at age 100?

• A. Whole Life
• B. Variable Life
• C. Term to 100
• D. Universal Life

Answer: (C)

A policy designed to provide coverage for a defined period and end at a specific age is a term policy with a set end date. A term to 100 is structured to cover you only until you reach age 100, at which point the coverage ends if not renewed or converted. It pays a death benefit if you die during that term, but it has no cash value and isn’t meant to last for your whole life. In contrast, whole life lasts for your entire life and builds cash value; universal life and variable life are also permanent or flexible products with ongoing coverage (and often cash value components or investment features). So the design that fits a fixed period ending at age 100 is the term to 100 policy.

A policy designed to provide coverage for a defined period and end at a specific age is a term policy with a set end date. A term to 100 is structured to cover you only until you reach age 100, at which point the coverage ends if not renewed or converted. It pays a death benefit if you die during that term, but it has no cash value and isn’t meant to last for your whole life.

In contrast, whole life lasts for your entire life and builds cash value; universal life and variable life are also permanent or flexible products with ongoing coverage (and often cash value components or investment features). So the design that fits a fixed period ending at age 100 is the term to 100 policy.