Florida Life and Health Insurance License Practice Test

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Prepare for the Florida Life and Health Insurance License Test. Study with flashcards and multiple choice questions, each with hints and explanations. Get ready for your certification exam with ease!

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.

When is the face amount of a Whole Life policy paid?

Only when the insured dies.
When the insured reaches a certain age.
When the policy accumulates enough cash value.
When the insured dies or at the policy's maturity date, whichever happens first.

The correct answer is: When the insured dies or at the policy's maturity date, whichever happens first.

Whole Life policies typically have a fixed death benefit, or face amount, that is paid out to the beneficiary upon the death of the insured. However, there is another factor that can affect when the face amount is paid out the policy's maturity date. A Whole Life policy reaches maturity when the insured reaches a certain age, usually around 100 years old. At this point, the policy's cash value will equal the face amount and the policy will be paid out. So while the face amount of a Whole Life policy is primarily paid out upon the insured's death, it can also be paid out at the policy's maturity date.