South Carolina Life Insurance Practice Exam

At what age must an insured attain in order to receive the face amount of a whole life insurance policy?

1. 75

2. 100

3. 65

4. 85

The correct answer is: 100

The correct answer is that an insured must attain the age of 100 to receive the face amount of a whole life insurance policy. Whole life insurance is designed to provide coverage for the insured's entire lifetime, as long as the premiums are paid. One of the key features of whole life insurance is its maturity at age 100. At this age, the policy reaches its maturity date, and the insurer is obligated to pay out the face amount of the policy to the insured or their beneficiary if they are still alive, effectively fulfilling the policy’s purpose. This maturity provision is significant for policyholders because it ensures that they will ultimately receive the benefits of their premiums over their lifetime, whether in the form of a death benefit or a cash payout when they reach the age of 100. Since whole life policies are structured this way, it underscores the importance of understanding the maturity age when considering such policies. In contrast, other ages mentioned in the options do not align with the standard provisions found in whole life insurance, thus further reinforcing that 100 is the correct age for maturity and payout of the policy's face value.