Utah Life Producer Practice Exam

Question: 1 / 400

In life insurance, what does "maturity" refer to?

When premiums stop being paid

The time when benefits are payable

In the context of life insurance, "maturity" specifically refers to the time when the benefits of the policy become payable. This is typically when the insured individual reaches a certain age, or in the case of a whole life policy, when the policy has been active for a specified period and has accumulated cash value. At maturity, the insurance company is obligated to pay out the policy's face amount to the policyholder or beneficiaries, depending on the terms of the policy. This concept is crucial for policyholders to understand, as it determines when they or their beneficiaries will receive the financial protection and benefits for which the premiums were paid.

The other options do not accurately depict the meaning of maturity in life insurance; hence, they do not fit the definition.

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The age limit for coverage

The point of policy cancellation

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