Ohio Life Insurance Practice exam

The death benefit in option A is described as remaining constant throughout the policy's duration. This characteristic is typical of whole life insurance policies. Such policies are designed to provide a guaranteed death benefit that does not change, ensuring that beneficiaries receive a predetermined amount upon the policyholder's death. This stability provides a sense of security for both the insured and their beneficiaries, as they can rely on a specific death benefit without concerns about market fluctuations or other variability.

In comparison, other options describe features that either do not align with the nature of a traditional whole life policy or represent more dynamic variable products. For instance, a death benefit that fluctuates with the market implies it is linked to investment performance, which is not a feature of a constant benefit policy. Similarly, limiting coverage to cash value or having an annually increasing benefit suggests a different type of insurance structure that contrasts with the stability of a constant death benefit offered in whole life insurance.