What is a characteristic of a typical whole of life policy?

A typical whole of life policy is designed to provide lifelong cover, which means that it remains in force until the policyholder passes away, as long as the premiums are paid. In this context, option B correctly states that many whole of life policies are structured in a way that they might not initially offer a surrender value or may have a lower surrender value in order to keep premiums more affordable for policyholders. This approach can make the product more appealing to those who want life insurance coverage without the higher premiums that might come with other policy designs that offer immediate surrender values.

The absence of a high or immediate surrender value does not detract from the primary benefit of a whole of life policy, which is to provide financial stability for beneficiaries upon the policyholder's death. This design helps to keep the premiums lower, making it a feasible option for many individuals who prioritize coverage over investment returns in the early years of the policy.

Other options do not accurately reflect the nature of typical whole of life policies. For instance, while some whole of life policies do have surrender values, they vary significantly and generally do not exist in the early years of the contract. The idea that the policy provides flexible premiums is not characteristic of standard whole of life policies, which typically involve fixed