LLQP Life Insurance Practice Exam

Endowing at age 100 refers to a specific aspect of life insurance policies, particularly in the context of whole life insurance. When a policy is said to "endow" at age 100, it means that the cash value of the policy will grow to equal the face value of the policy by that age. This is significant because it indicates that if the insured lives to age 100, the insurance company will pay out the full face amount of the policy, which is typically the death benefit.

The growth of the cash value to match the face value by this age ensures that the policyholder has a financial benefit regardless of whether they pass away before reaching 100, as the policy still provides value in the form of cash accumulation. The importance of this feature in life insurance is that it offers a way for policyholders to access their benefits during their lifetime, should they reach that age.

The other options do not accurately describe what occurs at the endowment age. While retirement benefits, cessation of premium payments, and time-limited benefits are features that may appear in various types of insurance products, they do not directly relate to the concept of endowing at age 100.