A producer is explaining the concept of limited-pay life insurance to a 40-year-old client. When comparing a straight life policy with a 10-pay life policy, which of the following statements is correct?

A producer is explaining the concept of limited-pay life insurance to a 40-year-old client. When comparing a straight life policy with a 10-pay life policy, which of the following statements is correct?



a. A 10-pay life policy will have a lower annual premium than a straight life

b. A straight life policy has immediate cash value

c. A policy fully paid up in 10 years will endow at the client's age of 50

d. The cash value in a straight life policy will accumulate at a slower rate than the cash value in a 10-pay life



Answer: D

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