Tennessee Insurance Complete Practice Exam 2025

The type of insurance that provides permanent life coverage with premiums payable for the lifetime of the insured is Whole Life insurance. This product is designed to offer a death benefit that lasts for the entire life of the insured, as long as the premiums are paid. Whole Life insurance not only ensures a guaranteed payout to beneficiaries at the time of death but also builds cash value over time.

Policyholders can borrow against this cash value or even withdraw funds when needed. The premiums for Whole Life insurance are generally fixed and level throughout the insured's lifetime, which provides predictability for budgeting and financial planning.

Other types of life insurance, such as Universal Life and Variable Life, have more flexible premium structures and potential investment components but may not guarantee a death benefit in the same way as Whole Life. Term Life insurance, on the other hand, provides coverage for a specified period and does not build cash value, which differentiates it significantly from Whole Life insurance.