Question:
❓Which type of life insurance is permanent and pays out to your beneficiaries no matter when you die (as long as the policy is active)?
A) Term Life
B) Universal Life
C) Accidental Death Insurance
D) Group Life through work
Answer:
✅ B) Universal Life
Here’s why:
Universal life is a type of permanent life insurance. As long as you keep the policy active, it’s guaranteed to pay out no matter when you pass.
It also includes a cash value component and flexible premiums—unlike term insurance, which expires, or group insurance, which often ends when you leave your job.
Here’s why the others fall short:
A) Term Life only pays out if you pass away during the term period. After that, it expires.
C) Accidental Death Insurance only covers certain types of deaths—accidents, not illness or natural causes.
D) Group Life typically ends when you leave your employer, and the benefit amount is limited.
Universal life is one of the most flexible forms of permanent insurance, which is why it’s often used in long-term planning strategies.
