If the applicant desires a savings-oriented policy with guarantees and is willing to pay premiums only until age 65, which should he purchase?

• A. Endowment at Death
• B. Term Insurance to 65
• C. Straight Whole Life
• D. Limited Pay Whole Life - Age to 65

Answer: (D)

The idea is to get a policy that builds savings and stays guaranteed, but with premium payments that end at a specific age. Limited Pay Whole Life to Age 65 does this: you pay level premiums only until age 65, then you’re done, yet the policy remains in force for life with a guaranteed death benefit and cash value growth. After 65 you still have lifetime coverage without further premium payments, which matches the desire for a savings-oriented policy with guarantees and a finite payment period.

Endowment at Death focuses on a lump-sum payout at death or end of term and isn’t structured around stopping premiums at 65 while maintaining lifelong coverage. Term insurance to 65 provides protection only during the term and has no cash value, so it isn’t savings-oriented. Straight whole life requires ongoing premiums for life, not stopping at 65, so it doesn’t meet the payment-ending requirement.