What is Whole Life Insurance? - Definition & Types


Choose an answer and hit 'next'. You will receive your score and answers at the end.

question 1 of 3

Money that accumulates a cash value and is paid to a beneficiary when the policy holder dies is called what?

Create Your Account To Take This Quiz

As a member, you'll also get unlimited access to over 79,000 lessons in math, English, science, history, and more. Plus, get practice tests, quizzes, and personalized coaching to help you succeed.

Try it risk-free
Try it risk-free for 30 days. Cancel anytime
Already registered? Log in here for access

1. The money that the beneficiary receives at the time of death is known as what?

2. Which whole life insurance policy has a fixed interest rate?

Create your account to access this entire worksheet
A Premium account gives you access to all lesson, practice exams, quizzes & worksheets
Access to all video lessons
Quizzes, practice exams & worksheets
Certificate of Completion
Access to instructors
Create an account to get started Create Account

About This Quiz & Worksheet

Use this quiz and worksheet combo to quickly assess what you know about the different options available for those seeking a whole life insurance policy. You will be quizzed mainly on your ability to recognize relevant terms based on given descriptions or definitions.

Quiz & Worksheet Goals

When you use this assessment, you will be tested on your ability to identify the terms that best describe:

  • A policy in which cash value is built and paid out to a beneficiary when the policyholder dies
  • Money that a beneficiary receives
  • A whole life insurance policy that has a fixed interest rate
  • Which type of policy is paid over a specific amount of time but lasts a lifetime
  • A policy type wherein a saving portion is built in that is dependent on investments such as stocks

Skills Practiced

  • Reading comprehension - ensure that you draw the most important information from the lesson, such as what life insurance policy would contain cash value and be paid out at the time of death
  • Information recall - remember what policy has a fixed interest rate
  • Knowledge application - use what you know to answer questions about different policy types, such as those that offer investment-based savings and those that are paid up over time but remain in effect throughout one's life

Additional Learning

It's important to understand about various options when it comes to life insurance, and you can learn more by using the lesson titled What is Whole Life Insurance? - Definition & Types. This lesson covers such details as:

  • Why people have life insurance
  • A drawback of the single-premium life insurance option
  • What an interest-sensitive life insurance policy can be used for
  • What influences the savings portion of an indexed universal life insurance policy