At what point does a Whole Life Insurance policy endow?

At what point does a Whole Life Insurance policy endow?

a.  At age 65

b.  When premium paid equals the death benefit

c.  When the cash value equals the death benefit

d.  In 30 years or age 65 , whichever comes first

Answer:- c. When the cash value equals the death benefit.

When the cash value is equal to the death benefit, a whole life insurance policy terminates. Here is a more detailed explanation in paragraph form:

Whole life insurance is a policy that covers for the insured’s lifetime. Every year, premiums are paid throughout the life of this policy. A portion of the premium is used to pay for insurance while another part accumulates as a cash value. Cash value is an account that grows with interest, can be used as collateral or cashed out. The cumulative cash value can eventually reach the level of death benefit. When the value of cash is equal to death benefit, then the policy gets “paid up” and no further premiums are required. The entire death indemnity remains available to the insured throughout his/her life. Normally this is at around age 100, but it can vary with the period of premiums paid and interest earned if there are any loans or withdrawals made (Livewell, 2023). A whole life policy will terminate when the cash value accumulates to reach the death benefit, which indicates that full payment has been made and lifetime protection offer continues.