Primerica Life Producer Practice Test

When would a 20-pay whole life policy endow?

1. When the insured reaches age 65

2. When the insured reaches age 100

3. When the insured reaches age 75

4. When the insured reaches age 90

The correct answer is: When the insured reaches age 100

A 20-pay whole life policy is designed so that the policyholder will pay premiums for a total of 20 years. The concept of endowment in life insurance refers to the point at which the policy's cash value equals the face amount of the policy, typically occurring when the insured reaches a certain age. For whole life policies, this endowment occurs when the insured turns 100. At this age, the policy is considered to have matured, meaning that the cash value equals the death benefit. If the insured is still alive, the insurance company will typically pay the face amount of the policy. This is a critical feature of whole life policies, as they provide both a death benefit and a living benefit through cash value accumulation. Thus, the correct answer clearly reflects the standard age at which a 20-pay whole life policy will endow, aligning with the general principles of whole life insurance and the maturity of the policy.