Which of the following is true regarding the death benefit of a permanent insurance policy?

When considering the death benefit of a permanent insurance policy, it is essential to understand the nature of these policies. Permanent life insurance is designed to provide lifelong coverage, which means that the death benefit is guaranteed for the life of the insured as long as the premiums are paid. This guarantee is a significant feature that distinguishes permanent insurance from term insurance, which only provides coverage for a specified period.

The death benefit is not contingent on the age at the time of application, meaning that it won’t vary based on the insured's age at that point. It also is not at risk of being eliminated unless the policy lapses due to non-payment of premiums. Furthermore, while permanent policies do accumulate cash value over time, the death benefit is paid out regardless of whether there is any cash value built up in the policy or not. Finally, the death benefit of a permanent insurance policy does not decrease over time; rather, it remains level or may even grow depending on the terms of the policy.

Thus, the statement that the death benefit is guaranteed for the life of the insured accurately reflects a core characteristic of permanent insurance policies, reinforcing their role as a long-term financial protection tool.