Which one of the following types of insurance builds up no cash value? a. 20-payment life b. term c. straight-life d. universal life

Answer

The type of insurance that builds no cash value is B. Term

Explanation

Cash value insurance is one that provides a permanent insurance for life and has high premium rates with a requirement of a fixed level premium deposit. Examples of cash value insurance covers are the whole life, variable life and universal life insurance. Whole life insurance is also called the straight life/ordinary life insurance cover. When premium payment term is limited to 20 years it is called 20-payment life.

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